This part of the question has three different scenarios for the calculation of weighted average cost of capital (WACC) and asks you to explain some issues surrounding it.

i.Hasbeen Enterprise has 2 million shares in issue. The current market price is 10 per share. The company's debt is publicly traded on the Paris Stock Exchange and the most recent quote for its price was at 90% of face value. The debt has a total face value of 10 million and Hasbeen Enterprise's credit risk premium is currently 2%. The risk-free rate is 3% and the equity market risk premium is 5%. The company's beta is estimated at 1.4 and its corporate tax rate is 40%. Calculate Hasbeen Enterprise's WACC.