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Calculate WACC: Market value of equity: $9,800,829,500 Market value of debt: $6,103,330,370 Debt Weight: Equity Weight: Tax rate: 35.00% WACC: Use CAPM Cost of Equity???
| Calculate WACC: | ||
| Market value of equity: | ||
| Market value of debt: | ||
| Debt Weight: | ||
| Equity Weight: | ||
| Tax rate: | ||
| WACC: Use CAPM Cost of Equity??? |
1. Cost of Equity:Stock quote linkStock price:65.95Dividend:1.66Key statistics linkBeta:1.43Shares outstanding:148,610,000Analysts' estimates link5-year dividend growth:6.85%Bond center link:Risk-free rate:0.13%Market Risk Premium:7.00%Cost of Equity:Use DDM: r = D/P + gCost of Equity:Use CAPM: r = rf + B * (Rm - Rf)2. Find Cost of Debt:Suppose the average bond information is below for an annual coupon paying bond:Maturity5Coupon4.00%FV$5,000.00P$4,500.00YTM3. Calculate WACC:Market value of equity:$9,800,829,500Market value of debt:$6,103,330,370Debt Weight:Equity Weight:Tax rate:35.00%
WACC: Use CAPM Cost of Equity?
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Option Strategies For Earnings Announcements A Comprehensive, Empirical Analysis
Authors: Ping Zhou , John Shon
1st Edition
0132947390,0132947404
