1. Calculate the WACC for this firm:
   • 30% is financed with debt and the remaining financed with equity
   • Cost of debt is 5%
   • Risk free rate is 2%
   • Expected market return is 8%
   • Beta of "AAA" stock is 1.10
   • Tax rate is 30%

Sales Cost of Goods Sold Selling and General Expenses Depreciation Interest Expense Income Before Taxes Income Taxes Net Income Retained Earnings, Beg Add: Net Income Less: Dividends Retained Earnings, End ASSETS Cash Accounts Receivable Inventory Total Current Assets Fixed Assets At costs Cumulated depreciation Fixed assets (net) Total Assets LIABILITIES + EQUITY Accounts Payable Other current liabilities Total Current Liabilities INCOME STATEMENT 2021 $18,000.00 $9,720.00 $5,400.00 $602.50 $295.00 $1,982.50 $495.63 $1,486.88 $2,145.00 $1,486.88 $446.06 $3,185.81 2021-12-31 $165.81 $3,380.00 $4,460.00 $8,005.81 $12,050.00 $3,560.00 $8,490.00 $16,495.81 $4,080.00 $675.00 $4,755.00 BALANCE SHEET