Acme Incorporated currently carries book value of debt of 200 million and its current Market Cap of Equity is 600 million(5,000,000 shrs outstanding). THERE IS NO PREFERRED STOCK. Acme's interest expense is on their debt is 12,000,000. Their corporate tax rate is 25%. Currently the US 10 Year Treasury bond is yielding 2.5%. The expected market return is 6%. Terminal Growth Rate is forecasted to be 3.5%. You must calculate the cost of equity using the CAPM using the information given above and a beta of 1.25 Round to 2 Decimal Corporate Tax Rate Expected Market Return Risk Free Rate Beta (Round to Nearest 1 decimal) Debt Value Equity Value Cost of Debt Cost of Equity Debt Weighting Equity Weighting WACC(round to 2 decimals) Terminal Growth Rate(above) Common Stock Outstanding Year 1 2 3 4 5 Terminal EBIT 9,250,000.00 9,777,858.00 10,189,000.00 10,878,500.00 11,589,000.00 Depreciation 925,000.00 977,785.80 1,018,900.00 1,087,850.00 1,158,900.00 OCF Capex 1,100,000.00 1,300,000.00 1,100,000.00 1,400,000.00 780,000.00 Net Change in Working Capital 1,500,000.00 800,000.00 200,000.00 200,000.00 450,000.00 FCF Year 6 projected FCF PV of FCF TV PV of TV

PLEASE help