First National Bank has a debt-to-equity ratio of 3. Its weighted average cost of capital is 12.50% and its cost of debt is 8%. First National Bank is subject to a 25% corporate tax rate. a. What is First National Bank cost of equity? b. What is First National Bank un-levered cost of capital? c. What would be its weighted average cost of capital is debt equity ratio is 0.5? 4?

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Q: Do you agree?

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Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.