Review View Acrobat Tell me v % v IM ili! Editing Ide: H 1 Times New Roman 12 ' ' 22 Conditional Formatting Format as Table B I Number Cells Cell Styles x fx CAN YOU PLEASE EXPLAIN AND SHOW THE FORMULA TO FIND T. WACC HIGLIGHTED IN YELLOW? A B D F G Component Caledonian Laker Source 1 Net Income (MS) 33.40 24.10 Given 2 Earings per share 1.04 1.53 Given 3 # of shares (M) 32.12 15.75 Net Income / Eamings per share 4 Price per share 14.00 12.63 Given 5 Market Value - Equity (M) 450 199 # of shares x Price per share 6 Market Value - Debt (M) 341 75 Given 7 Market Value - Total (M) 791 274 Market Value - Debt + Equity 8 - % Debt 43% 27% Market Value - Debt/Market Value - Total 9 -% Equity 57% 73% 1 -% Debt 10 Beta (levered) 1.07 0.93 Given 11 Beta (unlevered) 0.61 0.68 Beta (levered) x % Equity 12 Average Beta (unlevered) 0.64 Average Values for combined Apache/Sky Blue airline: % Debt 50.0% % Equity 50.0% Beta (relevered) 1.28 Risk free rate 6.0% Market risk premium 5.0% Expected equity retum 12.4% Expected cost of debt 7.0% Tax rate 21.0% WACC Given 1 -% Debt Average Beta (unlevered)/% Equity Assumption Historical figure CAPM calculation Given Statutory rate Weighed average of costs of equity and debt CAN YOU PLEASE EXPLAIN AND SHOW THE FORMULA TO FIND THE WACC HIGLIGHTED IN YELLOW