(Solved): recapitalizaton: please help, thanks! Currently, Forever Flowers inc. has a capital structure consis ...

Currently, Forever Flowers inc. has a capital structure consisting of $$20\%$$ debt and $$80\%$$ equity. Forever's debt currently has an $$9\%$$ yleld to maturity. The risk-free rate (frof) is $$5\%$$, and the market risk premium ( $$({\mathrm{f}}_{\mathrm{M}}?{\mathrm{r}}_{\mathrm{RK}}$$ ) is $$6\%$$. Using the CAPM, Forever estimates that its cost of equity is currently 12\%. The company has a $$40\%$$ tax rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Open spreadsheet a. What is Forever's current WhCC? Round your answer to two decimal places. b. What is the current beta on forever's common stock? Round your answer to two decimal places. c. What wotld Forever's beta be if the company had no debt in its capital structure? (Thot is, what is forever's unlevered beta, by? Round your answer to two decimal places. Porever's financial staff is consibering changing its capital structure to $$40\%$$ debt and $$60\%$$ equity. If the company went aheod weh the proposed change, the vield to maturity on the company's bonds would rise to $$10\%$$. The proposed change will have no effect an the company's tar rate. d. What would be the company's new cost of equity if it adopted the proposed change in capital structure? found your answer to two decimal piaces e. What would be the companr's new wacc if it adopted the proposed change in capital structure? Round your answer to two decimai places. 1. Eased on vour answer to part e, would you advise forever to adeot the proposed change in capital structure?