Question: Use Excel for Calculation and Show the process like how you calculate it. Question 4 AES Co. has market values of debt and equity of
Use Excel for Calculation and Show the process like how you calculate it.

Question 4 AES Co. has market values of debt and equity of $14 million and $35 million, respectively. The risk free rate is 6%, and the return on the S&P 500 portfolio (Rm) is 13%. The firm has an equity beta of 1.15 and a zero tax rate (a) What is AES' debt to equity ratio? (b) What is the firm's weighted average cost of capital? (c) What is the cost of capital for an otherwise identical all-equity firm
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