Sanella LLC, a private supermarket company, has asked you to help calculate its cost of capital. The associate working with you estimates that Sanella capital structure is 25% debt and 75% equity. She also reports that the average yield-to-maturity on Sanella debt is 6.25%. The associate also gives you the following data on three publicly-traded comparable firms (debt and equity are in billions of dollars): Company Mkt value of debt Mkt value of equity Equity beta Albertson's Safeway Winn-Dixie 5.4 6.6 0.4 13.1 23.3 2.1 0.45 0.65 0.73 Estimate Sanella's weighted average cost of capital (WACC). Assume a corporate tax rate of 20%, a long-term government bond rate of 5.00%, and a market risk premium of 7.00%. Explain the different steps