Calculate the weighted average cost of capital (WACC) for PDI.

E/V 80.00%

Cost of equity 9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V 20.00%

Cost of debt 4.00%

Corporate tax rate 40.00%

WACC 80% x 9.40%) + [20% x 4% x (1 - 40%)]= 8.00% WACC=(E/V x Re)+((D/V x Rd)x(1 - T))

*Cost of equity Risk free rate of return + (Beta *Risk premium) = 3% + (1.28 x 5%) 0.094

Givend the above, I cannot get the following:

Sum of FCF PV =?

Terminal value =?

Present value of terminal value =?

Total value of PDI =?

Assumptions

Discount rate ?

Terminal value ?