Qwert Typewriter Company and Yuiop Typewriters, Inc., are identical except for capital structures…. 1 answer below »


Qwert Typewriter Congregation and Yuiop Typewriters, Inc., are selfidentical save for cardinal structures. Qwert has 50 percent score and 50 percent equity financing, when-in-fact Yuiop has 20 percent score and 80 percent equity financing. (All percentages are in negotiate prize stipulations.) The borrowing rebuke for twain companies is 13 percent in a no-tax cosmos-people, and cardinal negotiates are conducive to be full. The rights of twain companies are not expected to become, and all rights are remunerated out to shareholders in the mould of dividends.

a. If you own 2 percent of the base store of Qwert, what is your dollar reappear if the congregation has net gratuitous pay of $360,000 and the overall cardinalization rebuke of the congregation, ko, is 18 percent? What is the implied equity cardinalization rebuke, ke?

b. Yuiop has the identical net gratuitous pay as Qwert. What is the implied equity cardinalization rebuke of Yuiop? Why does it disagree from that of Qwert?