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Unformatted text preview: D/V Beta 37.92% 1.25 from analysis in Table 1 0.91 this is the unlevered beta, or asset beta 42.20% 1.32 this is beta correspoding to the target ratio of 42.2% Table 3 WACC with the target ratio of 42.2% D/V 42.20% beta 1.32 r_D 0.066 yield on 30-year T-bond + credit spread of A+ corporate bonds r_E 11.58% yield on 30-year T-bond + beta estiamte of 1.32 * 5% of market risk premium Tc 40% WACC 8.36%...
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This note was uploaded on 10/07/2011 for the course FIN 494 taught by Professor Rejinguo during the Fall '11 term at Ill. Chicago.
- Fall '11