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Problem 4 stockage supplment The company has the following simplified Balance Sheet documents d'iCloud. The cost of debt is 6% and the cost of equity

image text in transcribed Problem 4 stockage supplment The company has the following simplified Balance Sheet documents d'iCloud. The cost of debt is 6% and the cost of equity is 12% Compute the company's WACC? Problem 5 Rio is a company specialized in producing healthcare products. Its free cash flows in millions are expected to be as follow: Cash flows will settle down starting year 6 and will record a growth of 3% per year. Assume a WACC of 9%. 1. Compute the horizon value at year 6 ? 2. Compute the present value of the company? 2. If the market value of debt is $36 million, compute the total value of equity

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