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Based on the data below, which of the three companies would have the lowest discount rate for its Free Cash Flow to the Firm?

Based on the data below, which of the three companies would have the lowest discount rate for its Free Cash Flow to the Firm? Company A Company B Company C Risk Free Rate 2.50% 2.50% 2.50% Beta 1.32 1.02 0.647 Equity Risk Premium 6.00% 6.00% 6.00% Debt ratio 40.00% 55.00% 70.00% Tax rate 0.00% 0.00% 0.00% Cost of Debt 3.00% 6.00% 11.00%

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