Beta Rf 0.75 1.20% Beta 0.81 Equity Risk Premium (= Beta (ERM) - Rf)) %607 Equity Risk Premium 4.44% (Beta (ERM) - Rf)) Required Rate of Return Required Rate of Return 8.64% 87.90% Wequity Wa 12.10% Wave After-tax Cost of Debt 3.60% After-tax Cost of Debt 4.50% WACC 7.70% WACC 8.30%