cost of debt 8%     unlevered cost of capital 10%     systematic risk of asset 1.5     1)           Unlevered Firm Levered Firm   EBIT 10000 10000   Interest 0 3200   Taxable Income 10000 6800 34% Tax  3400 2312   Net Income 6600 4488   CFFA 0 -3200         2) PV of the tax shield?               Value of levered firm 3200     tax rate 34%       (value of levered firm*tax rate)/(1+cost of debt)     PV of tax shield 1007.41               value of levered firm/cost of debt   3) Size of debt 40000           4)       a)   EBIT(1-T)/cost of capital     Value of unlevered firm 66000           b)   value of unlevered firm+Tax*size of debt     Value of levered firm 79600           c)   total value of unlevered firm-debt      Equity value 39600   Hi I need help with subparts d,e, and f!  The first three are answered above! Thank you! 4.)Calculate the following values:a) value of unlevered firm; b) value of the levered firm; c) equity value; d) Cost of equity; e) cost of capital; f) systematic risk of the equity

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