Question
A. Determining the appropriate discount rate (weighted average cost of capital vs marginal cost of capital) Hello! Our professor wants us to analyze the following
A. Determining the appropriate discount rate (weighted average cost of capital vs marginal cost of capital)
Hello! Our professor wants us to analyze the following related to our financial analysis term paper. So far I am already doing my projections for all financial statements. I think they are related to these. I hope someone can explain to me how to easily conduct these (hopefully with terms for non-accounts like me and that are not so difficult to understand):
1. Cost of Debt
2. Cost of Equity
a. determining the risk-free interest rate
b. determining the value of beta to use [own estimate, or relevant beta estimate from other source(s) appropriately cited]
c. Types of equity considered
B. Terminal Value Projections
C. Determining the market value of debt
D. Intrinsic value of the company (total, per share) and comparison with present stock price
If there's computation needed, please feel free to share with me.
thank you so much!!!
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