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Calculate the pre-tax Cost of Debt, the after tax cost of debt, the cost of equity, the weights to debt and equity and the
Calculate the pre-tax Cost of Debt, the after tax cost of debt, the cost of equity, the weights to debt and equity and the weighted average cost of capital for a business. sing the following assumptions (watch the posted YouTube video for help if you need it. Also, note that I gave you the Market Expected return as opposed o the Market Premium. The Market Premium = Market Expected return - risk free rate. Make sure you account for this in your answer). 2021 Interest Expenxe 2021 end of year total debt 2020 end of year total debt Company tax rate 10 year treasury rate Market Expected Return Estimated Company Beta Market Capitalization of Equity $1,352 $24,387 $23,892 28% 1.70% 7% 1.2 $83,292 Pre-tax cost of debt After-tax cost of debt Cost of equity Weight to Debt Weight to Equity WACC
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