Company name Company ticker Fox Corporation FOX Year 2019 Risk free rate - Market risk premium Beta 2.10% 30-year T-bond rate 5.00% historical average, or implied 1.59 equity beta, or levered beta o Bond rating BBB morningstar.com, or Factset 1 Tax rate 21% 2 3 D/CD+E) 40.40% long-term debts / capital -4 5 6 bond rating table 17 Rating Spread interest rate 13 D 12.00% 14.10% c 9.00% 11.10% 7.50% 9.60% 6.00% 8.10% B- 5.00% 7.10% 23 B 4.00% 6.10% 24 B+ 3.00% 5.10% 25 BB 2.50% 4.60% 26 BBB 2.00% 4.10% 27 A- 1.50% 3.60% 28 A 1.25% |3.35% 29 1.00% 3.10% 30 AA 0.70% 2.80% 31 AAA 0.30% 2.40% 32 33 3 CS Scanned with CamScanner 35 A+ 3 Fill in the blue color cells 4 Use the inputs in the previous worksheet to answer the questions here Turn in this file to Canvas "Assignments" 5 6 bond rating table 7 8 Cost of equity 9 10 before-tax interest rate 11 12 Cost of debt (after-tax) 13 14 D/(D+E) 15 16 E/DE) 40.40% debt ratio equity ratio 28 WACC 21 If the debt ratio increases and the bond rating worsens, 22 the equity beta will be (higher, lower, or uncertain) 23 the cost of equity will be (higher, lower, or uncertain) 24 the cost of debt after-tax will be (higher, lower, or uncertain) 25 the WACC will be (higher, lower, or uncertain) 26 27 28 29 CS Scanned with Can 32