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PharmaCare is a company that offers health care services. The company has $ 2 4 0 million in interest - bearing debt. The firm has
PharmaCare is a company that offers health care services. The company has $ million in interestbearing debt. The firm has million shares trading at $ a share, and the unlevered beta of firms in the health care business is The firm has a current rating of with a default spread of over the risk free rate. The risk free rate is the equity risk premium is and the corporate tax rate is
The market value of equity in millions is
Estimate the debt to capital ratio for the firm.
Estimate the debt to equity ratio for the firm.
What is the levered beta for the firm?
Estimate the before tax cost of debt for the firm.
Estimate the after tax cost of debt for the firm.
Estimate the cost of equity for the firm.
Estimate the weighted average cost of
capital for the firm.
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