You are evaluating an investment in Cape Charles Electric, a privately owned electric

utility company that needs more capital to expand its solar farm operations. After

reviewing public companies in this sector you determine that the following are good

comparables $($stock symbols$)$: AQN, CWEN, NEE, OGE, and PNW$.$ You then use Yahoo

Finance to collect relevant financial metrics for these companies.

a$)$ Calculate market capitalization and enterprise value as of $3/18/2024$ for the $5$

companies based on the Yahoo Finance data $($use Statistics and Historical Data

sections$).$

b$)$ Find the levered beta for each company on Yahoo Finance. Then calculate an

unlevered beta for each company and the average unlevered beta for the group. You

can assume that their debt betas are zero and that effective tax rates are $25\%.$

c$)$ Calculate a levered beta for Cape Charles Electric assuming that it expects to maintain

an $80\%$ debt$/$equity ratio indefinitely and has a $28\%$ tax rate.