Question Completion Status You are trying to value a private company. The company has 5 million of debt and 4 million of book equity. The ratio of market value to book vakue for simidar 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 frms in the same industry is 2, and the average debt to-equity ratio for bic f ms in this nd try s 4 The corporate tax rate is 40% The nskf e rate is 6% and the maket risk premium is 5.5% The interest rate for debt is 10%. Here is the FCFF model for valuing the business Year EBIT (EBIT grows at 15% for the first $2.30 $2.65 S3.04 S3.50 S4.02 S422 five years and 5% thereafter ) EBIT (1-Tax Rate) Less (Cap. Expenditures Depreciation) grows $1.38 $1.59 $1.82 $2.10 $2.41 $2.53 .115 S.132 152 s 175 $ 201 $0.00 at same 15% annual rate as revenue for 5 years and are offsetting thereafter) Equals FCF Assuming after 5 years, the growth rate is 5% forever 1. What is the unlevered Beta for publicly traded firms in the same industry? Question Completion Status You are trying to value a private company. The company has 5 million of debt and 4 million of book equity. The ratio of market value to book vakue for simidar 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 frms in the same industry is 2, and the average debt to-equity ratio for bic f ms in this nd try s 4 The corporate tax rate is 40% The nskf e rate is 6% and the maket risk premium is 5.5% The interest rate for debt is 10%. Here is the FCFF model for valuing the business Year EBIT (EBIT grows at 15% for the first $2.30 $2.65 S3.04 S3.50 S4.02 S422 five years and 5% thereafter ) EBIT (1-Tax Rate) Less (Cap. Expenditures Depreciation) grows $1.38 $1.59 $1.82 $2.10 $2.41 $2.53 .115 S.132 152 s 175 $ 201 $0.00 at same 15% annual rate as revenue for 5 years and are offsetting thereafter) Equals FCF Assuming after 5 years, the growth rate is 5% forever 1. What is the unlevered Beta for publicly traded firms in the same industry