Question: - Beta = 1.7 - Required return on debt (yield to maturity on a long term bond) = 3.1% - Tax rate = 21% -

- Beta = 1.7 - Required return on debt (yield to

- Beta = 1.7

- Required return on debt (yield to maturity on a long term bond) = 3.1%

- Tax rate = 21%

- 30-year government bond = 2.3%

- Market risk premium can be assumed to be 5%

Calculate WACC?

Current Capitalization (Millions of USD) Currency Shares Price Shares Outstanding $ Million USD 10.7 58.2 622.7 10.2 422.0 Market Capitalization - Cash & Short Term Investments + Total Debt + Pref. Equity + Total Minority Interest =Total Enterprise Value (TEV) 1,034.5 237.0 Book Value of Common Equity + Pref. Equity + Total Minority Interest + Total Debt Total book capital 422.0 659.0

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