1. Your firm can generate 300 in bebit per year forever. You are twice as risky as the average firm. The market is expected to earn 12% and the risk free rate is 2%. Find the value of the firm and the wacc if there are no taxes and you use no debt.
2. Same firm as above, but let the tax rate be 50%. Find the wacc and firm value.
3. Same firm as above, but the firm uses 300 in 2% debt. There are no taxes. Find value and wacc.
4. Same as above but taxes are 50%.
5. What is the beta of the firm above?
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