(rD, rE, and WACC) Assume that E r( ) M 7 5 and rf 3 Use the data below to calculate the following Boeings variables as of year end 2014 a Calculate Boeings cost of debt (rD) b Calculate Boeings cost of equity (rE) c What is Boeings WACC 1 2 E(M) 3 4 Stock price 5 Stock beta A Calculating Boeing's ...

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(rD, rE, and WACC) Assume that E r( ) M = 7.5% and rf = 3%. Use...

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(rD, rE, and WACC) Assume that E r( ) M = 7.5% and rf

= 3%. Use the data below to calculate the following Boeing’s variables as of year-end 2014.

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a. Calculate Boeing’s cost of debt (rD).

b. Calculate Boeing’s cost of equity (rE).

c. What is Boeing’s WACC?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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(rD, rE, and WACC) Assume that E r( ) M = 7.5% and rf = 3%. Use...

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1 2 E(M) 3 4 Stock price 5 Stock beta A Calculating Boeing's WACC 6 Outstanding shares (M) 7 Market value (M) 8 9 Book value per share 10 Book value of equity (M) 11 Boeing's debt (M) 12 Market value, debt + equity (M) 13 14 15 Income before tax (M) B 7.50% 3.00% 145.46 0.89 704.39 C 102,461

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Principles Of Finance Wtih Excel

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