1. Briefly discuss what role of FIRB and ACCC in regulating takeovers in Australia

2. You are given the following information:

D = Debt

E= Equity

D/E=Target debt-to-equity=40%

T= Corporate marginal tax rate=30%

Cost of debt=6%

Rf=Risk free rate=10-year U.S treasury bond rate=2.0%

Rm- Return on a Broad based stock index

Rm-Rf=Equity risk premium=5.0%

^{= Levered beta ( from finance.yahoo.com) =1.5}

^{Calculate the WACC.}