Calculating the WACC for Eastman Chemical

finance.yahoo.com

www.finra.org/marketdata

http://www.valuepro.net/index.shtml

FINAL PROJECT-OPTION #3 Calculating the WACC for Eastman Chemical Several web sites are utilized to find the information required to compute the WACC. 1. Go to a site such as finance.yahoo.com; type in EMN and choose key statistics. Get the market value of equity (price shares outstanding) and beta. 2. Go to the bonds section to get the risk-free rate and decide on an estimate of the market risk premium, such as 7.0%. Estimate REusing the CAPM. 3. Use the dividend growth model and estimates of EPS growth to estimate RE ra 4. Decide which model provides the most realistic estimate or average them. 5. Go to www.finra.org/marketdatato find the weighted average of the yield to maturity for bond issues. Book value and market value of debt is often similar, so you may want to use the book value for simplicity, which can be found on financial statements reported to the SEC. Toun rket aire caktdato 6. Use market value weights to compute the WACC ALSO USE: http://www.valuepro.net/index.shtml