Use the following information to answer the next three questions:

Rearden Steel has $18 billion in debt, an equity capitalization of $95 billion, and an equity beta of 1.24 as reported by Yoohoo Finance. Included in Rearden's assets are $22 billion in cash and marketable securities. Assume the current risk-free rate of interest is 3%, the current market risk premium is 7%, and that there are no corporate taxes.

Question 1:

Rearden's Enterprise Value is closest to?

113

135

99

109

91

Question 2

The beta of Rearden's business assets (unlevered beta) is closest to?

0.25

1.24

1.29

1.19

0.87

Question 3

Rearden's weighted average cost of capital (WACC) is closest to?

12.06%

8.18%

11.68%

7.96%

9.06%