Problem
There are two formulas we used in class that you can do some research on, about six to eight hours of work. The formulas are WACC and levered and unlevered beta.
With WACC we multiply the cost of debt and the cost of equity by their respective weights in the capital structure. What I would like you to research is what is the D for debt and the E for equity. Are they the book values or market values? Is Debt total liabilities or debt for borrowed money (funded debt) or something else?
Regarding Beta, the formula calls for D/E, again what is debt and what is equity? Are they the book values or market values? Is Debt total liabilities or debt for borrowed money (funded debt) or something else?
The internet may be slightly helpful, but I think you will need to go to the library a look in various finance texts.
If you are interested, your written report should include footnotes and cite all your references. The quality of your work will be considered in modifying your grade, but don't expect more than a 10% change in total points.