Andyco, Inc., has the following balance sheet (hint: the balance sheet is based on book value) and an equity market-to-book ratio of 1.5. The market value of debt equals its book value. The corporate tax rate is 25%. Please answer the following questions: (12 points)

Assets (in millions)		Liabilities & Equity (in millions)
$1000		Debt	$400
		Equity	$600

a.

What weights should it use for its WACC calculation? The debt weight for the WACC calculation is _______ (Round to two decimal places)

The equity weight for the WACC calculation is _______ (Round to two decimal places)

b. Andyco has a cost of equity of 15%, and has an effective after-tax cost of debt of 4%. What is the firm's WACC?

The firm's WACC is _____

(Round to two decimal places.)

c. Andyco is expected to generate $130 million in free cash flows per year (the first free cash flow occurs in one year). What is the enterprise value of Andyco?

Andyco's enterprise value is______million. (Round to two decimal places.)