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A) Estimate the WACC MolyCorp.Inc? Part A is answered, but B and C is not answer B ) Estimate the value of Molycorp. Inc? C)

A) Estimate the WACC MolyCorp.Inc? Part A is answered, but B and C is not answer

B ) Estimate the value of Molycorp. Inc?

C) Is the $11.49 share price reasonable?

Use the following assumptions and other data given in the case.

Tax rate 35%

Risk-free rate 2.65%

Market risk premium 6%

Beta of Molycorps debt 0.30

Target capital structure 25% Debt, 75% equity

Cost of Debt is 7.14%

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