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Assume the company has weight of debt W D = 80%, cost of debt R D = 15%, for un-leveraged firm: B u =1; the

Assume the company has weight of debt WD = 80%, cost of debt RD = 15%, for un-leveraged firm: Bu =1; the company has Tax Rate = 40%, risk-free rate Rf = 4%, Market Return = 10%, free cash flow FCF0 = 200 million, growth rate g = 4%. Use the following formula for beta of leveraged company: B = Bu [1+ (1-T) (WD /WS)], What is the WACC and what is the value of the firm?

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