Question	Answer
What is the Capital Structure?	% of Debt = % of Equity =
What is the cost of Debt?
What is the cost of Equity?
What is an estimate of WACC?

Value 25,000,000 2.75% A- Item Source Equity Shares Current Outstanding Market Data 10 Year Current Treasury Bond Market Data Rate (Assume this to be the Risk Free Rate and Maturity Risk Premium) Current Credit Current Risk Rating Credit Rating for ABC Company "Default Risk Current Premium" for Market Data AA Debt Debt Liquidity Assumption Risk Premium for Company Current Stock Current Price Market Data Income Most Recent Statement Income Information Statement 3.25% 0% $55.00 1,200,000,000 250,000,000 950,000,000 380,000,000 570,000,000 Balance Sheet Information (Assume Book Value of Debt is Market Value of Debt) Earnings Before Interest and Taxes (EBIT) Interest Expense Earnings Before Taxes Taxes Earnings After Taxes Liabilities Current Liabilities Accounts Payable Accrued Liabilities Current Portion of Long Term Debt Total Current Liabilities Non-Current Liabilities Long Term Debt Total Liabilities 1.2 18,000,000 12,000,000 25,000,000 55,000,000 400,000,000 455,000,000 Equity Beta Market Consensus 5.0% Equity Market Risk Premium Market Consensus