Question: Assumption: W D = 60%, R D = 14%, for unleveraged firm: B u =1; Tax Rate=35%, R f = 5%, Market Return Premium =

Assumption: W_D = 60%, R_D = 14%, for unleveraged firm: B_u =1; Tax Rate=35%, R_f= 5%, Market Return Premium = 6%, FCF₀ = 250 million, g=3%. Use the formula B = B_u [1+ (1-T) (W_d /W_s)], What is the WACC and what is the value of the firm?

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