Part 3 Problem Solving Please complete all the yellow-highlighted cells in each question

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Part 3 Problem Solving Please complete all the yellow-highlighted cells in each question. Do not insert/delete any columns, rows, or cells. You may use empty cells to show your work or do calculations. Question 9 Arya Manufacturing's tax rate is 25%, its beta is 1.20, and it uses no debt. Its CFO is considering moving to a capital structure with 20% debt and 80% equity. If the risk-free rate is 3.0% and the market risk premium is 5.0%, what is the firm's cost of equity before and after the change in the capital structure? 1.20 Unlevered beta Target debt weight Target equity weight Tax rate Risk-free rate Market risk premium Levered beta Cost of equity before the shift Cost of equity after the shift 20% 80% 25% 3% 5% 4 points 3 points 3 points