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6. The following data refers to Company Z Beta = 1.2 Required return on debt (yield to maturity on a long term bond) =
6. The following data refers to Company Z Beta = 1.2 Required return on debt (yield to maturity on a long term bond) = 4% Tax rate = 21% 30-year government bond = 3% Current Capitalization (Millions of USD) Currency Share Price USD $111.41 Shares Out. Market Capitalization - Cash & Short Term Investments + Total Debt + Pref. Equity + Total Minority Interest = Total Enterprise Value (TEV) Book Value of Common Equity + Pref. Equity +Total Minority Interest + Total Debt = Total Capital 1.490.8 166,087.4 4,455.0 20,665.0 5,201.0 187,498.4 50.316.0 5,201.0 20.665.0 76,182.0 Estimate the cost of capital (WACC) for Company Z. State all your assumptions. (20 points)
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
