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Firm Tax Rate EBITA Net Income Depreciation Market Values: Debt Market Value: Equity Capital STructure Policy Equity Beta Asset Beta EV/EBITDA Multiple P/E Ratio A

Firm Tax Rate EBITA Net Income Depreciation Market Values: Debt Market Value: Equity Capital STructure Policy Equity Beta Asset Beta EV/EBITDA Multiple P/E Ratio
A 35% 30 2 10 100 300 Constant D/E x x x x
B 30% 40 3 15 200 400 Constant Debt x x x x
C 35% 50 4 20 200 300 Constant D/E x x x x
D 25% 60 6 30 300 300 Constant Debt x x x x
Average x x x

How do you find the X's, with the information given?

Tax Rate 35%
Debt x
Equity 200
Debt Rating BBB
Shares Outstanding 50
Treasury Bond Yield 2.00%
Market Risk Premium 6.00%
Equity Beta x
Expected return on equity x
Expected return on debt x
Pre-tax WACC (1) x

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