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Unlevered beta and Hamada equation - Wizards Motors has $10 million in assets, which were financed with $3 million of debt and $7 million in
Unlevered beta and Hamada equation- Wizards Motors has $10 million in assets, which were financed with $3 million of debt and $7 million in equity. Wizard's beta is currently 1.4 and its tax rate is 30 percent.
- Use the Hamada equation to find Wizards' unlevered beta,
- Using the unlevered beta that you found in part a., calculate anew levered beta, if the company changes its debt/equity ratio to .8.
- Using the levered beta you found in part b. if the risk-free rate = 3% and if the expected return in the market = 7%, calculate therequired return on equityfor the company.
- Using the required return on equity that you found in part c. and an interest rate on the company debt of 6%, calculate the companyWACC.
How would I find question 4? I have all the others
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