Question: 1/ You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through 5.

- Loan amount: $400,000
- Interest expenses: $50,000
- Tax rate: 20%
- Equity financing: $400,000
- Equity partner share: 40%
- Net income: $200,000

How much is the cost of equity?
2/ You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through 5.

- Loan amount: $400,000
- Interest expenses: $50,000
- Tax rate: 20%
- Equity financing: $400,000
- Equity partner share: 40%
- Net income: $200,000
3/ You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through 5.

- Loan amount: $400,000
- Interest expenses: $50,000
- Tax rate: 20%
- Equity financing: $400,000
- Equity partner share: 40%
- Net income: $200,000
How much is the weight of debt?
4/You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through 5.

- Loan amount: $400,000
- Interest expenses: $50,000
- Tax rate: 20%
- Equity financing: $400,000
- Equity partner share: 40%
- Net income: $200,000
How much is the weight of equity
5/You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through 5.

- Loan amount: $400,000
- Interest expenses: $50,000
- Tax rate: 20%
- Equity financing: $400,000
- Equity partner share: 40%
- Net income: $200,000
How much is the weighted average of cost (WACC)?  Edit