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Calculation of individual costs and WACC BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market capitalization
Calculation of individual costs and WACC BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market capitalization of its equity is $77.007 billion and its debt has a market value of $6.359 billion. a. Calculate the market value weights for BLK's capital structure. b. Calculate BLK's cost of equity using a beta of 1.37, a risk-free rate of 0.71%, and a market risk premium of 5.80% c. Calculate BLK's cost of debt using a bond price of $1,053.88, semi-annual coupon payment of $40.00, and 9 years to maturity. d. Calculate BLK's current WACC using a 21% corporate tax rate. a. The market value weight of long-term debt in BLK's capital structure is decimal places.) 96. (Round to two The market value weight of common stock equity in BLK's capital structure is %. (Round to two decimal places.) b. BLK's cost of equity using the CAPM is %. (Round to two decimal places.) c. BLK's before-tax cost of debt is %. (Round to two decimal places.) d. BLK's current WACC using a 21% corporate tax rate is %. (Round to two decimal places.)
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