Question: Using the information below, calculate the beta that should be used in Eric's WACC calculation. Current capital structure includes 3 0 . 0 % equity
Using the information below, calculate the beta that should be used in Eric's WACC calculation.
Current capital structure includes equity and debt
Target capital structure is equity and debt
Market risk premium is
Risk free rate is
Marginal tax rate is
Pretax cost of debt is
You don't have an estimate of Eric's beta. The closest comparable you can find is Bullion, which has a levered beta of Bullion's balance sheet shows in debt and in equity.
Bullion's market capitalization is currently
Enter your answer as a positive number, rounded to decimal place without percentage symbol.
Example: If beta type
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