Please answer this problem using excel formulas with both the answers and the method of retrieving the answers. Make sure to do this in EXCEL. Thank you!

A B D E F G H I J K L M 1 2 Problem 14.15 Petrobras's WACC Comparison 3 4 The various estimates of the cost of capital for Petrobras of Brazil appear to be very different, but are they? Reorganize your answers to the previous five prolbems into those costs of capital which are in U.S. dollars versus Brazilian reais. Use the estimates for 2004 as the basis of comparison. 5 6 7 8 9 10 U.S. dollar WACCs JPMorgan Citigroup (S) (June 18, 2004) (March 8, 2005) 4.800% 9.400% 7.000% 0.000% 0.000% 0.000% UNIBANCO (Aug 12, 2004) 4.500% 5.500% 0.000% Brazilian reais WACCs Citigroup (R$) (June 17, 2003) 9.900% 0.000% 0.000% BBVA (Dec 20, 2004) 4.400% 4.000% -1.000% 11 12 13 14 15 16 17 18 Capital Cost Components Risk Free Rate Sovereign/Country Risk Premium Petrobras Company Premium "Adjusted" Risk Free Rate Levered Beta Market/Equity Risk Premium Cost of equity (USS) 0.87 4.500% 1.09 5.500% 0.99 6.000% 1.40 5.500% 0.80 6.000% 2.000% 0.000% 2.000% Exchange Rate Cost of equity (RS) 19 20 21 22 23 24 25 Cost of Debt Tax rate Cost of debt, after-tax 8.400% 28.000% 8.400% 27.100% 8.600% 34.000% 10.000% 34.000% 8.500% 35.000% Debt/Capital ratio Equity/Capital ratio 33.300% 66.700% 32.400% 67.600% 40.000% 60.000% 50.600% 49.400% 28.000% 72.000% 26 27 28 29 WACC (calculated) WACC (1-bank report) 14.7% 12.3% 13.2% 12.0% 12.0% 30 31 32 33 34 35