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4) Calculate the WACC for a firm with the following data: Correlation Coefficients Past Returns Comparable Firms Market Industry Std Deviation D/E Tax Rate 30%
4) Calculate the WACC for a firm with the following data: Correlation Coefficients Past Returns Comparable Firms Market Industry Std Deviation D/E Tax Rate 30% 40% 0.67 0.67 Firm A Firm B 0.89 0.54 0.72 0.66 38% 29% 42% 0.29 1.34 Firm C 0.77 30% Risk Free Rate Expected Mkt Return Market Standard Deviation Industry Standard Deviation 3.80% 10.30% 17.00% 21.00% Most Recent Debt Rating Default Premium 6.50% Firm's Debt/Equity Ratios Actual Target 0.72 1.63 Firm's Marginal Tax Rate 30% i) 10.075% ii) 14.112% iii) 8.672% iv) 11.724%
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