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Erm) Problem 3. Cost of equity, re, and WACC. Please fill in the cells highlighted in GREEN. Consider the following data concerning Elizabeth Company: 10%

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Erm) Problem 3. Cost of equity, re, and WACC. Please fill in the cells highlighted in GREEN. Consider the following data concerning Elizabeth Company: 10% Cost of debt, PD 8% Corporate tax rate, Tc 25% Equity beta, 0.70 Debt, D 1,000,000 Risk-free rate, re Equity (Common stocks), E 1,000,000 4% Problem 3.1: Calculate the company cost of equity (common stocks). Cost of equity, re Problem 3.2: Find the company's weighted average cost of capital, WACC. 2,000,000 V=D+E WACC

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