BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market

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BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market capitalization of its equity is $77.004 billion and its debt has a market value of $4,967 million.

a. Calculate the market value weights for BLK’s capital structure.

b. Calculate BLK’s cost of equity using a beta of 1.13, a risk-free rate of 0.70%, and a market risk premium of 6%.

c. Calculate BLK’s cost of debt using a bond price of $1,071, semi-annual coupon payment of $31.25, and six years to maturity.

d. Calculate BLK’s current WACC using a 21% corporate tax rate.

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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Question Posted: Feb 29, 2024 05:01 AM

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BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market

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a Calculate the market value weights for BLKs capital structure Market Value of Equity 77004 billion ...View the full answer

Principles Of Managerial Finance

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