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Big Door Company has 8.2 million shares outstanding, which are currently trading for about $14 per share and have an equity beta of 1.1. Big

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Big Door Company has 8.2 million shares outstanding, which are currently trading for about $14 per share and have an equity beta of 1.1. Big Door has 19,300 outstanding bonds, with a 5% coupon rate, payable semi-annually and due in 10 years. The bonds are rated BBB. Currently the credit spread for BBB is 139 basis points over equivalent-maturity Government of Canada debt. The current yield on 10-year Canada bonds is 5%, compounded semi-annually. The risk-free interest rate is 2%, and the market risk premium is 6.1%. The company has a 35% tax rate. (Do not round intermediate calculations.) a. Calculate Big Door's WACC. (Round your answer to 2 decimal places.) WACG % b. Calculate Big Door's unlevered beta, using the following formula Bu ES - (1 Tyxp TODE (Round your answer to 2 decimal places.) Unlevered beta c. Big Door was 50% debt-financed, what would be its WACOP Assume that the beta of its debt is unchanged by the capital structure change (Round your answer to 2 decimal places.) WADO Big Door Company has 8.2 million shares outstanding, which are currently trading for about $14 per share and have an equity beta of 1.1. Big Door has 19,300 outstanding bonds, with a 5% coupon rate, payable semi-annually and due in 10 years. The bonds are rated BBB. Currently the credit spread for BBB is 139 basis points over equivalent-maturity Government of Canada debt. The current yield on 10-year Canada bonds is 5%, compounded semi-annually. The risk-free interest rate is 2%, and the market risk premium is 6.1%. The company has a 35% tax rate. (Do not round intermediate calculations.) a. Calculate Big Door's WACC. (Round your answer to 2 decimal places.) WACG % b. Calculate Big Door's unlevered beta, using the following formula Bu ES - (1 Tyxp TODE (Round your answer to 2 decimal places.) Unlevered beta c. Big Door was 50% debt-financed, what would be its WACOP Assume that the beta of its debt is unchanged by the capital structure change (Round your answer to 2 decimal places.) WADO

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