Use the required return on stock from the CAPM model, and calculate the WACC.

WACC Estimation The following table glves the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of reglonal motel chalns. The following facts also apply to TII: investors with a yield to maturity of 11.8%. If new bonds were sold, they would have an 11.8% yield to maturity. same yleld to Investors, and the company would Incur a 3.15% flotation cost to sell it. (ROE) is expected to be 12%. 4. The stock has a beta of 1.6. The T-bond rate Is 6%, and RPM Is estimated to be 5%. 6. TII is In the 25% federal-plus-state tax bracket. questions. Do not round intermediate calculations. Round your answers to two decimal places. a. What are the current market value weights for debt, preferred stock, and common stock? (Hint: Do your work in dollars, not millions of dollars.) WACC Estimation The following table glves the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of reglonal motel chalns. The following facts also apply to TII: investors with a yield to maturity of 11.8%. If new bonds were sold, they would have an 11.8% yield to maturity. same yleld to Investors, and the company would Incur a 3.15% flotation cost to sell it. (ROE) is expected to be 12%. 4. The stock has a beta of 1.6. The T-bond rate Is 6%, and RPM Is estimated to be 5%. 6. TII is In the 25% federal-plus-state tax bracket. questions. Do not round intermediate calculations. Round your answers to two decimal places. a. What are the current market value weights for debt, preferred stock, and common stock? (Hint: Do your work in dollars, not millions of dollars.)