Snow games has 20000 shares outstanding a market price of, Ask an Expert

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Snow Games has 20,000 shares outstanding, a market price of $20 per share, and a cost of equity of 15.00%. It can borrow at a pretax rate of 9.00%, but currently has no debt. It wants to restructure itself by selling shares to buy $100,000 in debt. It s tax rate is 40%.

A. What is the firm's current market value?

B. What is the firm's market value after adding the $100,000 in debt?

C. What is the firm's cost of equity after adding debt?

D. What is the firm's WACC after adding debt?

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