Calculate Wacc for unlevered firm for 20% 40% and 60% debt

5.The dividend payout ratio is 30%.

the tax rate is 35.5%

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Exhibit 1 - Selected Financial Information for Hill Country Snack Foods Company, 2006 to 2011 (millions of dollars, except for per share data and financial ratios) 2006 2007 2008 2009 2010 2011 Sales $1,027.0 $1,059.9 $1,099.5 $1,180.4 $1,261.7 $1,364.6 Operating income (EBIT) $97.4 $79.1 $82.8 $108.2 $126.7 $151.3 Net income $64.6 $52.6 $53.8 $68.1 $79.9 $97.6 Earnings per share $1.91 $1.56 $1.59 $2.01 $2.36 $2.88 Dividends per share $0.45 $0.45 $0.45 $0.60 $0.70 $0.85 Cash & cash equivalents $108.1 $107.6 $106.4 $139.8 $164.8 $181.1 Total assets $668.5 $727.3 $770.4 $824.9 $894.7 $979.9 Debt $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Owners' equity (book value) $529.7 $567.4 $606.3 $654.6 $710.9 $780.1 Common shares outstanding (in millions) 33.7865 33.8076 33.8278 33.8581 33.8633 33.8834 Annual growth rate of sales n/3 3.2% 3.7% 7.4% 6.9% 8.2% Annual growth rate of E.P.S. n/a -18.3% 1.9% 26.4% 17.4% 22.0% Dividend payout ratio 23.6% 28.8% 28.3% 29.9% 29.7% 29.5% Net profit margin 6.3% 5.0% 4.9% 5.8% 6.3% 7.2% Return on assets" 9.7% 7.2% 7.0% 8.3% 8.9% 10.0% Return on equity 12.2% 9.3% 8.9% 10.4% 11.2% 12.5% Return on assets and return on equity are calculated as net income divided by end of year total assets, and end of year owners equity, respectively.Hill Country Snack Foods Company Exhibit 4 - Pro Forma 2011 Financial Information for Alternative Capital Structures (millions of dollars, except for per share data and financial ratios) Pro Forma 2011 for Actual 20% 40% 60% 2011 Debt-to-CapitalDebt-to-CapitalDebt-to-Capital Sales $1,364.6 $1,364.6 $1,364.6 $1,364.6 Operating income (EBIT) $151.3 $151.3 $151.3 $151.3 Interest expense $0.0 $4.1 $12.8 $33.5 Income before income taxes $151.3 $147.2 $138.5 $117.8 Income taxes $53.7 $52.3 $49.2 $41.8 Net income $97.6 $94.9 $89.3 $76.0 Dividends paid to common stockholder $28.8 $28.5 $26.8 $22.8 Common shares outstanding 33,883,400 29,709,777 26,983,400 24,476,604 Earnings per share $2.88 $3.19 $3.31 $3.11 Dividends per share $0.85 $0.96 $0.99 $0.93 Interest coverage ratio (times) n/a 36.90 11.82 4.52 Debt $0.0 $145.0 $290.0 $435.0 Owners' equity (book value) $780.1 $580.1 $435.1 $290.1