Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 4/5. The company wants to increase its leverage to 5/4 for debt to equity. If the current return onassets is 14% and the cost of debt is 11%, what are the current and the new costs of equity if Roxy operates in a world of no taxes?What is the current cost of equity if Roxy operates in a world of no taxes?

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?