Beta Rf 0.99 Beta 4.70% Rf 1.07 4.70% Equity Risk Premium 5.04% Equity Risk Premium 5.46% (= Beta * (E(RM) - Rf)) (= Beta * (E(RM) - Rf)) Required Rate of Return 9.74% Required Rate of Return 10.16% 97.10% WEquity WEquity 83.00% 2.90% WDebt WDebt 17.00% After-tax Cost of Debt 4.40% After-tax Cost of Debt 4.90% WACC 9.60% WACC 9.3%