multiple choice:

• You have the following information from a peer Restaurant company. The current price per share is 118$, book value per share is 22.79$ and the consensus target price is 135$. The current number of shares is 528.6 Million. The cost of equity for the Company using CAPM is 8.25% The current tax rate is 22%. The net debt is 31,889 Million $. The10 year government bond yield is 2.80%. The company has a rating of A-, which implies a spread of 95 basis points over the 10-year govt bond (you can interpret this as an additional return to add over the 10-year government bond). Please, estimate the WACC for the company. Remember that there may be extra information you dont need.

  1. 6.45%

  2. 8.25%

  3. 4.73%

  4. 3.85%