Since you are the best in your department, you have been appointed as an advisor of one big project. The management have asked you for advice on how best to estimate the firm's Weighted-Average Cost of Capital (WACC). You should propose a methodology for estimating the firm's WACC based on best practice and Finance theory (i.e., the relevant academic literature). Since the firm has a high degree of leverage, management would like a detailed advice with regards to estimating the cost of equity and debt capital (though advice should not be limited to this input of WACC). With respect to this, management would like a valuation of whether the CAPM method would be appropriate, as well as detailed advice on how best to estimate the beta of the firm's shares and debt. Working alone, you are required to prepare a written report addressing the company's management, and containing the following: 1. A brief summary of main uses for WACC, and how leverage effects WACC