Please calculate WACC using the CAPM cost of equity and not the dividend yield.

E B D 5 WACC for Royal Mail 6 Capital Sources Book Values Percentage 7 Current Debt 290 6% 8 Non-current Debt 559 12% 9 Equity 3,846 82% 10 11 Cost of Debt 12 Current Debt 0.900% 13 Non-current Debt 4.375% 14 Weighted Average 3.188% 15 16 Cost of Equity 17 Dividend per share 21 18 Price per share 511 19 Dividend Yield 4.110% 20 21 Risk-free Rate 1.551% 22 Beta 0.65 23 Market Risk Premium 5.8% 24 CAPM Cost of Equity 5.321% 25 26 Weighted Average Cost of Capital 27 Tax Rate 20.0% 28 WACC 79