Q22-Q23 are based on the following information: You are trying to value a private company. The company has 4 million of debt and 4 million of book cquity. The ratio of market value to book value for similar firms is 2 . You decide to use this ratio to estimate the market value of equity as the input for the weights in WACC calculation. The average beta for publicly traded firms in the same industry is 1.86, and the average debt-to-equity ratio for public firms in this industry is 0.4. The corporate tax rate is 40%. The risk free rate is 4% and the market risk premium is 5.5%. The interest rate for the debt is 10%. 22 What is levered beta for the private firm? a 1.5 b 1.75 c. 1.95 d 2.1 e 2.4 23 What is the WACC for the private firm? a 10.02 b 11.82 c 13.15 d 14.73