Question
Calculations on how to find the following information for the Mckesson Corporation: Cost of Equity (Common Stock) Betafrom Regression and two Betas from analysts Beta
Calculations on how to find the following information for the Mckesson Corporation:
Cost of Equity (Common Stock)
Betafrom Regression and two Betas from analysts
Beta Chosen for CAPM and why
Capital Assets Pricing Model (include how determined RFand[ RMor (RM- RF)]
Discounted Cash Flow (DCF) (only if dividends - include how determined)
Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)
Cost of Preferred Stock
Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)
Market Value of Debt (will have calculated above, but will need to add any longterm leases from balance sheet to get total market value of debt)
Market Value of Equity
Market Value of Preferred Stock
Value of Firm
Firm's Tax Rate (explain how determined)
Weight for Equity
Weight for Preferred Stock
Weight for Debt
WACC (Weighted Average Cost of Capital)
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
