Question: Question 4 (this question has two parts, a) and b)) (5 + 3 = 8 marks) Parta) From the figures mentioned below of Umbrella Corp,

Question 4 (this question has two parts, a) and b)) (5 + 3 = 8 marks) Parta) From the figures mentioned below of Umbrella Corp, calculate the Weighted Average Cost of Capital (WACC). I Interest expenses $443 million Corporate tax rate 30% Default spread 1.56% Market Value of short term debt $885 million Market Value of long term debt $9,552 million Market value of operating liabilities $1200 million Total asset of firm $18,349 million 0.79 Systematic risk Market value of equity $21,129 million Risk free rate 1.7% Market risk premium 4.72%

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