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Can you please calculate, or work out the problem on an Excel Worksheet ? w d 0% 20% 30% 40% 50% r d 0.0%

Can you please calculate, or work out the problem on an "Excel Worksheet"?

wd

0%

20%

30%

40%

50%

rd

0.0%

9.0%

10.0%

11.0%

12.0%

Tri Co. has the following cost of debt structure: The market risk premium is 4.5%, the risk-free rate is 5%, beta of unleveraged firm is 1.20, Hamadas equation b= bU [1 + (1 - T)(wd/we)]. T= 35%.

Please use the above information to answer the following questions:

  1. If the firm uses 50% debt, what is the cost of equity of the firm, based on CAPM model?
  2. What is WACC of the firm?
  3. If FCF0 = 200 million, g=4%, what is the firm value?v

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