"Here is Establishment Industries' market-value balance sheet (Figures in millions): Net working capital $ 920 Debt $ 1,400 Long-term assets 2,980 Equity 2,500 Value of firm $ 3,900 $ 3,900 The debt is yielding 6.0%, and the cost of equity is 15.0%. The tax rate is 36%. Investors expect this level of debt to be permanent. a. What is Establishment's WACC? (Do not round intermediate calculations. Round your answer to 2 decimal places.) WACC % b. How would the market-value balance sheet change if Establishment retired all its debt. (Leave no cells blank - be certain to enter ""0"" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.) New Market-Value Balance Sheet (figures in millions) New Market-Value Balance Sheet (figures in millions) New Market-Value Balance Sheet (figures in millions) New Market-Value Balance Sheet (figures in millions) Net working capital $ Debt $ Long-term assets Equity Value of firm $ Total $"
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