Consider the following financial data for Accenture

US 30-Year T-Bond Yield = 2%

Market Risk Premium = 6.25%

Tax Rate = 21%

Also the following data for Accenture:

Stock Price = $174.19

Market Cap = $111.61B

Beta = .95

Moodys = A1 (95 basis points)

Total Debt = $28.8 million

Number of Shares Outstanding = 640.75 million

EPS = $6

Return on Assets = 16.01%

Total Debt/Equity (Book Value) = .28%

Book Value/share = $15.29

Revenues = $38.57B

Calculate the Cost of Capital for Accenture.

A. Calculate the Cost of Capital for Accenture. Choose the best answer from the list below.

1. 7.938%

2.

5.339%

3.

2.330%

4.

2.950%

5.

8.622%

B. Continuing with question 2 what is the Cost of Debt for Accenture?

1.

.95%

2.

8.25%

3.

7.2%

4.

2.95%

C. Using the Accenture financial profile information (see question above) calculate the MVA for Accenture.

1.

$111.61 B

2.

$75.02.B

3.

$67.05B

4.

$101.82B

5.

$61.72B