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Big Door Company has 11.6 million shares outstanding, which are currently trading for about $16 per share and have a levered equity beta of 11

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Big Door Company has 11.6 million shares outstanding, which are currently trading for about $16 per share and have a levered equity beta of 11 . Big Door has 20,900 outstanding bonds, with a 6% coupon rate, payable semi-annually and due in to years. The bonds are rated BBB. Currently the credit spread for BBB is 157 basis points over equivalent-maturity Government of Canada debt. The current yield on 10 year Canada bonds is 2%, compounded sem-annualy. The risk-free interest rate is 26%, and the market isk premum 15 6.4%. The company has a 35% tax rate (Do not round intermediate calculations.) a. Calculate Bia Door's WACC. (Round your answer to 2 decimal places.) wace x b. Calculate Big Door's unlevered beta, using the following formula. (Round your answer to 2 decimal places.) c. If Big Door was 50% debt-financed, what would be its WACC? Assume that the beto of its debt is unchanged by the capital structure change (Round your answer to 2 decimal places.)

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