Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the Netflix Annual 1 0 - K report of year 2 0 2 2 , Risk - free rate of 4 % Market

Based on the Netflix Annual 10-K report of year 2022,
Risk-free rate of 4%
Market risk premium of 5.5%
Netflixs credit rating is BBB
please answer the following:
5. Cost of Equity Capital. Round to 2 decimal places
6. Market Value of Equity. For the number of shares, use the outstanding number at December 31,2022, not the weighted average over the year. Round to 2 decimal points.
7. Total Debt. (i.e., short and long-term debt and leases as given in the 10-K). Note: Please provide the answer in the format as given in the 10-K in thousands
8. After-Tax Cost of debt. Use the following data from FRED to infer Netflixs cost of debt as of December 31,2022. Round to 2 decimal points and include the % sign. For example, if the answer is 7.8394%, enter 7.84%. Use a marginal tax rate of 21%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Trade Finance

Authors: Tarsem Bhogal, Arun Trivedi

2nd Edition

303024542X, 9783030245429

More Books

Students also viewed these Finance questions