Use the following information to answer the next three questions: Rearden Steel has $18 billion in debt, an equity capitalization of $95 billion, and an equity beta of 1.24 as reported by Yoohoo Finance. Included in Rearden's assets are $22 billion in cash and marketable securities. Assume the current risk-free rate of interest is 3%, the current market risk premium is 7%, and that there are no corporate taxes. 

Question: Rearden's Enterprise Value is ?

Question 2 The beta of Rearden's business assets (unlevered beta) is ?

Question 3 Rearden's weighted average cost of capital (WACC) is?

Answer rating: 100% (QA)

To calculate Reardens Enterprise Value we need to subtract the cash and marketable securities from t... View the full answer