Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete blue squares Thanks Company name Company ticker Comcast Corporation CMCSA Year 2017 Risk free rate Market risk premium Beta Cost of equity 3.00% 30-year

image text in transcribedimage text in transcribedimage text in transcribedComplete blue squares Thanks

Company name Company ticker Comcast Corporation CMCSA Year 2017 Risk free rate Market risk premium Beta Cost of equity 3.00% 30-year T-bond rate 5.50% historical average, or implied 1.43 finance yahoo.com; morningstar.com 10.87% Bond rating Yield Tax rate Cost of debt A- morningstar.com 4.5% bond rating table 35% 2.93% after-tax D D+E 46.28% long-term debts / capital WACC 7.19% Ratin Spread 12.00% 9.00% 7.50% 6.00% 5.00% 4.00% 3.00% 2.50% 2.00% 1.50% nterest rate 15 .00% 12.00% 10.50% 9.00% 8.00% 7.00% 6.00% 5.50% 5.00% 4.50% B+ D/E 0% 11% 25% 43% 67% 100% 150% 233% 400% 900% WACC 8.04% 7.78% D/(D+E) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Beta 0.917 0.983 1.066 1.172 1.314 1.513 1.810 2.307 3.300 6.279 Cost of Equity 8.04% 8.41% Bond Rating Cost of debt 2. I 5% 2.5% Interest rate 3.30% 3.30% 3.70% 3.70% 4.25% 4.50% 5.00% 9.00% 15.00% The optimal D/(D+E) is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Corporate Finance

Authors: Richard Brealey

10th Global Edition

0071314172, 9780071314176

More Books

Students also viewed these Finance questions

Question

Have you rehearsed your talk several times?

Answered: 1 week ago