6. Assume an M&M world with no taxes. The risk free rate of return is 5% and the market risk premium is 8%. XYZ Corp. is financed with equity and debt according to the proportions specified in the table below. Fill in all missing cells in the table. (If you like spreadsheets, here is a good opportunity to use one.) Proportion Expected Expected XYZ's XYZ's XYZ's Weighted of Equity Return On Return on WACC Equity Debt Beta Average Financing XYZ's XYZ's Debt Beta Beta of for XYZ Equity XYZ's Securities 100% (no debt) 1.25 (no debt) 80% 17.25% 1.53125 0.125 60% 21% 0.125 50% 24% 2.375 0.125 40% 7.2% 0.275 28.06667 2.883333 30% 9.4% % 3 20% 11.6% 0.825 10% 29.4% 13.4% 3.05 1.05 5% 14.24% 1.155 (no 0% (no equity) 15% equity)