Professional Documents
Culture Documents
CASe Solution
CASe Solution
• Exp[ Unlevered β] :
Donde:
BL is the firm's beta with leverage.
Tc is the corporate tax rate. >> 30%
D/E is the company's debt/equity ratio.
• WACC:
Donde:
Re = cost of equity
Rd = cost of debt (see income statement) >> 8.0%
E = market value of the firm's equity
D = market value of the firm's debt
V=E+D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate >> 30%
NPV
4 5
5900 6400
3300 3600
2600 2800
194 202
1016 1043
1390 1554
417 466
973 1088
4 5
7429 7734
2476 2578
9905 10312
10800 12000
3844 4887
6956 7113
2950 3200
9906 10313
75% 75%
25% 25%
0.48 0.48
11.8% 11.8%
10.3% 10.3%
658.44 667.78
3,185.35