Discount fucture Pro9%Years1Discount Factor0.92 Levered beta1.5D/E Ratio1.5Tax30%Unlevered Beta0.7 D/E Ratio114.7%Grokster Holdings has a levered beta of 1.8 with a D/E ratio of 2.6 . The tax rate is 30%. Afree, estimate the unlevered equity beta. Swamp and Sand Industries has outstanding debt of 69 and equity of 32. Calculate the equtotal assets.
Webster Global Services has debt at an after-tax rate of 1.3% and equity with a required reDebt/Equity ratio of 0.7, calculate the Weighted Average Cost of Capital. There is no prefe
Webster Global Services has outstanding debt of 23 and equity of 74. Calculate the debt-topercentage).

Unlevered Beta0.8D/E Ratio3.5tax20%Levered Beta3.0Market Rate of Retu5.60%Risk Free Rate1.20%Market Risk Prem4.4%Cashflow117discount Rate1%Years3PV of Cash Flow 113.6 growth Rate2.10%Rate of Return11.00%Cash Flow105Terminal Value1,204.6 Dividend1.8growth Rate 7%Current Stock34.25Return on Equity12.3%St. Louis Brewing Co. has an unlevered beta of 2 , however, they want to add debt until their d1.7 . Currently, they have a tax rate of 20%. Calculate the new levered beta. Grokster Investment analysts have determined the market rate of return to be 5.7%. In evaover a 20 year time horizon, they use the 20 year T-Bond rate as the risk-free rate which isorder to evaluate investments, calculate the Market Risk Premium (MRP).

