Table 2. Value of the company using the WACC approach. No Debt Debt = $380,000 EBIT 104,000 104,000 Tax 0 104,000 104,000 Change in net PPE Change in NWC Free cash flow 104,000 104,000 NOPAT 0.80 0.38 Unleveraged beta Proportion of debt Debt to equity Leveraged beta Cost of equity (use CAPM) 0.80 0.00 0.00 0.80 WACC Enterprise value Difference in enterprise values Calculate ratio of debt to enterprise value Provide an intuitive explanation for your results regarding the difference in enterprise values. KISK FREE RATE : 6.0% Morrer Risk PREMIUM : 5.5%. Tax = 30% Table 2. Value of the company using the WACC approach. No Debt Debt = $380,000 EBIT 104,000 104,000 Tax 0 104,000 104,000 Change in net PPE Change in NWC Free cash flow 104,000 104,000 NOPAT 0.80 0.38 Unleveraged beta Proportion of debt Debt to equity Leveraged beta Cost of equity (use CAPM) 0.80 0.00 0.00 0.80 WACC Enterprise value Difference in enterprise values Calculate ratio of debt to enterprise value Provide an intuitive explanation for your results regarding the difference in enterprise values. KISK FREE RATE : 6.0% Morrer Risk PREMIUM : 5.5%. Tax = 30%