The following is a partial copy of the example on effective tax rates in your lecture notes. In this example, we find the firm value is $2935.42 if the WACC is 9% (see below). Change the WACC from 9% to 12% and recompute the firm value.

Below $2000

$2000 to $2300

$2300 to $2600

Above $2600

WACC	9%
EBIT growth	10%					5%
Tax rate	20%	20%	20%	20%	20%	20%	20%
Year	0	1	2	3	4	5	6
EBIT	$150.00	$165.00	$181.50	$199.65	$219.62	$241.58	$253.66
EBIT(1-t)	$120.00	$132.00	$145.20	$159.72	$175.69	$193.26	$202.92
Reinvestment	$30.00	$33.00	$36.30	$39.93	$43.92	$48.32	$50.73
FCFF	$90.00	$99.00	$108.90	$119.79	$131.77	$144.95	$152.19
TV						$3,804.83
PV		$90.83	$91.66	$92.50	$93.35	$2,567.08
Value	$2,935.42