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Beta Market leverage Progressive Insurance Group ( PGR ) 1 . 5 5 0 % Aetna, Inc. ( AET ) 1 . 4 6 0
Beta Market leverage
Progressive Insurance Group PGR
Aetna, Inc. AET
All state ALL
Spread between S&P Composite Returns and LongTerm US Government Bond Returns is
US Government Interest Rates on year bond is
UNR inc.s Insurance divisions Debt Rate Premium above Government is
Tax rate is
Assume that target capital structure of the insurance division is debt and equity. What is the WACC of the division, under target capital structure?
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