14 15 16 17 18 19 Competitors WACC 20 Central HZH 7 8 985 21 WW 22 24 23 Esitmate of Alliance Capital Structure Equity $150,000 P 67,000 Debt Rate Unley Beta Lev Beta Cost of Equity WACC 25 26 27 28 29 30 Economist estimate for the future market premium: 6.30% Current 20-year U.S. Treasury yields: 4.38% 31 Cost of E 11.44% 11.25% 8.50% YTM MV EQ 196,640 135,160 D+E 277,189 204,910 %E 0.709 0.660 %D 0.291 0.340 Unlevered Beta WACC

calculate unlevered beta and wacc