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estion: Calculate the weighted average cost of capital (WACC) for PDI. E/V80.00% Cost of equity9.40% Risk-free rate 3.00% Beta 1.28 Market equity risk premium 5.00%

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estion:

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

E/V80.00%

Cost of equity9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V20.00%

Cost of debt4.00%

Corporate tax rate40.00%

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 equityRisk 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 ?

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\fLet X a normal random variable with mean u and variance o . Consider Z = X - H Then Z is a O Bernoulli random variable O exponential random variable O Binomial random variable O normal random variable O uniform continuous random variable O standard normal random variable O geometric random variabled. Is the amount of snowfall in December in City A a discrete random variable, a continuous random variable, or not a random variable? O A. It is a discrete random variable. O B. It is a continuous random variable O C. It is not a random variable e. Is the number of bald eagles in a country a discrete random variable, a continuous random variable, or not a random variable? O A. it is a discrete random variable O B. It is a continuous random variable. O C. It is not a random variable f. Is the exact time it takes to evaluate 27 +72 a discrete random variable, a continuous random variable, or not a random variable? O A. It is a continuous random variable O B. It is a discrete random variable O C. it is not a random vanable

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