can someone pls help me with this ??
Case 13: Royal Mail 1. What is going on with Hillary Hunt and Royal Mail Highlight the relevant background information and the key issues facing Royal Mail. 2 Take the view of Kyle Brooks and explain his estimate in Exhibit 6 (Include a breakdown of his calculation). Explain what assumptions he made and why you think those choices were made. What do you think of his analysis? 3. Complete the table below: Calculate the market value capital structure weights (You can use the book values as a substitute for the market value of debt). Calculate the cost of equity and cost of debt. (Calculate the YTM: given the bond price of 106 for the ten year annual bond, with a coupon rate of 4.375%, given in Exhibit 6). Calculate the weighted Average Cost of Capital. Value Percentage Capital Sources Total Debt (Book Value) Equity (Market Value) Cost of Debt Yield on Royal Mail Bond Yield of BBB Debt Cost of Debt Estimate Cost of Equity Risk Free Rate Beta Market Risk Premium CAPM Cost of Equity Weighted Average Cost of Capital Tax Rate WACC 4. Complete the table below and calculate the WACC for the Comparable Firms given in Exhibit 9. utilize the Corporate Bond rates given in Exhibit 8. Reflect on the WACC of Royal Mail in relation to the comparison data. What can you conclude? Tax Rate Risk Free Rate Market Risk Premium National Sever United Grid Trent Tesco Utilities Vodafone Debt / Value Credit Rating Cost of Debt Beta Cost of Equity WACC Case 13: Royal Mail 1. What is going on with Hillary Hunt and Royal Mail Highlight the relevant background information and the key issues facing Royal Mail. 2 Take the view of Kyle Brooks and explain his estimate in Exhibit 6 (Include a breakdown of his calculation). Explain what assumptions he made and why you think those choices were made. What do you think of his analysis? 3. Complete the table below: Calculate the market value capital structure weights (You can use the book values as a substitute for the market value of debt). Calculate the cost of equity and cost of debt. (Calculate the YTM: given the bond price of 106 for the ten year annual bond, with a coupon rate of 4.375%, given in Exhibit 6). Calculate the weighted Average Cost of Capital. Value Percentage Capital Sources Total Debt (Book Value) Equity (Market Value) Cost of Debt Yield on Royal Mail Bond Yield of BBB Debt Cost of Debt Estimate Cost of Equity Risk Free Rate Beta Market Risk Premium CAPM Cost of Equity Weighted Average Cost of Capital Tax Rate WACC 4. Complete the table below and calculate the WACC for the Comparable Firms given in Exhibit 9. utilize the Corporate Bond rates given in Exhibit 8. Reflect on the WACC of Royal Mail in relation to the comparison data. What can you conclude? Tax Rate Risk Free Rate Market Risk Premium National Sever United Grid Trent Tesco Utilities Vodafone Debt / Value Credit Rating Cost of Debt Beta Cost of Equity WACC
