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An analyst has estimated the Capital Asset Pricing Model for Egon LLC, a company that works on alternative energy sources. The analyst have used monthly

image text in transcribedimage text in transcribed An analyst has estimated the Capital Asset Pricing Model for Egon LLC, a company that works on alternative energy sources. The analyst have used monthly returns to estimate the following model: (RiRf)=+E(RmRf). The analyst has provided you with the following output from their estimation in Excel: analyst's model was purely used to estimate the equity beta. a) (2 Points) Given its current capital structure, what is Egon LLC's cost of equity capital? (2 Points) What is Egon LLC's weighted average cost of capital? (3 Points) What is Egon LLC's unlevered Beta? (2 Points) Egon LLC is considering a factory that produces solar panels that they would finance through 75% debt and 25% equity. Explain why the firm should not value this project using the WACC from part b. An analyst has estimated the Capital Asset Pricing Model for Egon LLC, a company that works on alternative energy sources. The analyst have used monthly returns to estimate the following model: (RiRf)=+E(RmRf). The analyst has provided you with the following output from their estimation in Excel: analyst's model was purely used to estimate the equity beta. a) (2 Points) Given its current capital structure, what is Egon LLC's cost of equity capital? (2 Points) What is Egon LLC's weighted average cost of capital? (3 Points) What is Egon LLC's unlevered Beta? (2 Points) Egon LLC is considering a factory that produces solar panels that they would finance through 75% debt and 25% equity. Explain why the firm should not value this project using the WACC from part b

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