Date updated:	05-1-15
Created by:	Aswath Damodaran, adamodar@stern.nyu.edu
What is this data?	Cost of equity and capital (updateable)				US companies
Home Page:	http://www.damodaran.com
Data website:	http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Companies in each industry:	http://www.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions:	http://www.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm
To update this spreadsheet, enter the following						Cost of Debt Lookup Table (based on std dev in stock prices)
Long Term Treasury bond rate =			2.17%			Standard Deviation		Basis Spread
Risk Premium to Use for Equity =			5.75%	Global weighted average		0	0.25	0.50%
Global Default Spread to add to cost of debt =			0.00%	Global weighted average		0.25	0.5	1.00%
Do you want to use the marginal tax rate for cost of debt?					Yes	0.5	0.65	1.50%
If yes, enter the marginal tax rate to use					40%	0.65	0.8	2.00%
						0.8	0.9	2.50%
						0.9	1	3.00%
						1	10	4.00%
Industry Name	Number of Firms	Beta	Cost of Equity	E/(D+E)	Std Dev in Stock	Cost of Debt	Tax Rate	After-tax Cost of Debt	D/(D+E)	Cost of Capital
Advertising	52	1.18	8.96%	66.39%	51.52%	3.67%	4.13%	2.20%	33.61%	6.69%
Aerospace/Defense	93	1.16	8.84%	84.07%	50.15%	3.67%	14.87%	2.20%	15.93%	7.78%
Air Transport	22	0.98	7.80%	55.09%	53.32%	3.67%	18.71%	2.20%	44.91%	5.28%
Apparel	64	0.99	7.88%	82.83%	56.24%	3.67%	11.16%	2.20%	17.17%	6.90%
Auto & Truck	22	1.09	8.47%	48.56%	43.52%	3.17%	4.45%	1.90%	51.44%	5.09%
Auto Parts	75	1.35	9.92%	77.73%	53.89%	3.67%	11.05%	2.20%	22.27%	8.20%
Bank (Money Center)	13	0.81	6.81%	31.38%	39.98%	3.17%	26.43%	1.90%	68.62%	3.44%
Banks (Regional)	676	0.53	5.20%	56.28%	37.41%	3.17%	20.66%	1.90%	43.72%	3.76%
Beverage (Alcoholic)	22	1.06	8.24%	82.05%	55.14%	3.67%	8.54%	2.20%	17.95%	7.16%
Beverage (Soft)	46	1.14	8.71%	81.27%	61.94%	3.67%	5.55%	2.20%	18.73%	7.49%
Broadcasting	28	1.30	9.62%	58.46%	62.12%	3.67%	18.34%	2.20%	41.54%	6.54%
Brokerage & Investment Banking	46	1.16	8.84%	24.78%	44.77%	3.17%	13.99%	1.90%	75.22%	3.62%
Building Materials	39	1.12	8.59%	75.62%	43.52%	3.17%	17.45%	1.90%	24.38%	6.96%
Business & Consumer Services	177	1.19	9.03%	76.68%	52.77%	3.67%	13.30%	2.20%	23.32%	7.44%
Cable TV	18	0.91	7.42%	69.06%	52.83%	3.67%	21.18%	2.20%	30.94%	5.81%
Chemical (Basic)	46	0.94	7.55%	71.27%	50.32%	3.67%	10.88%	2.20%	28.73%	6.01%
Chemical (Diversified)	10	1.17	8.91%	75.08%	41.14%	3.17%	22.47%	1.90%	24.92%	7.17%
Chemical (Specialty)	103	1.03	8.07%	82.40%	51.80%	3.67%	11.16%	2.20%	17.60%	7.04%
Coal & Related Energy	42	1.64	11.61%	47.53%	74.62%	4.17%	0.99%	2.50%	52.47%	6.83%
Computer Services	119	1.16	8.84%	78.39%	59.41%	3.67%	10.48%	2.20%	21.61%	7.40%
Computers/Peripherals	64	1.21	9.13%	91.35%	66.35%	4.17%	7.35%	2.50%	8.65%	8.56%
Construction Supplies	55	1.60	11.37%	68.78%	47.26%	3.17%	16.28%	1.90%	31.22%	8.42%
Diversified	23	1.00	7.91%	62.16%	32.85%	3.17%	13.96%	1.90%	37.84%	5.64%
Drugs (Biotechnology)	400	1.10	8.52%	92.18%	93.06%	5.17%	1.48%	3.10%	7.82%	8.10%
Drugs (Pharmaceutical)	151	1.03	8.08%	88.17%	75.04%	4.17%	4.58%	2.50%	11.83%	7.42%
Education	42	1.13	8.65%	71.72%	70.19%	4.17%	12.18%	2.50%	28.28%	6.91%
Electrical Equipment	126	1.24	9.29%	85.57%	65.34%	4.17%	5.99%	2.50%	14.43%	8.31%
Electronics (Consumer & Office)	28	1.37	10.06%	95.76%	56.16%	3.67%	4.50%	2.20%	4.24%	9.73%
Electronics (General)	189	1.03	8.08%	87.19%	69.01%	4.17%	8.64%	2.50%	12.81%	7.37%
Engineering/Construction	56	1.31	9.69%	78.55%	47.91%	3.17%	14.18%	1.90%	21.45%	8.02%
Entertainment	84	1.21	9.10%	78.42%	58.48%	3.67%	4.11%	2.20%	21.58%	7.61%
Environmental & Waste Services	103	1.28	9.56%	71.14%	65.61%	4.17%	6.31%	2.50%	28.86%	7.52%
Farming/Agriculture	37	0.84	7.02%	62.32%	41.59%	3.17%	9.36%	1.90%	37.68%	5.09%
Financial Svcs. (Non-bank & Insurance)	288	0.67	6.01%	7.65%	38.80%	3.17%	18.49%	1.90%	92.35%	2.22%
Food Processing	96	0.99	7.88%	78.61%	42.05%	3.17%	13.70%	1.90%	21.39%	6.60%
Food Wholesalers	14	1.41	10.29%	85.40%	35.73%	3.17%	13.47%	1.90%	14.60%	9.07%
Furn/Home Furnishings	27	1.09	8.44%	78.98%	54.24%	3.67%	14.48%	2.20%	21.02%	7.13%
Green & Renewable Energy	26	1.32	9.76%	47.63%	53.18%	3.67%	1.94%	2.20%	52.37%	5.80%
Healthcare Products	261	0.99	7.86%	86.46%	64.48%	3.67%	6.73%	2.20%	13.54%	7.09%
Healthcare Support Services	138	1.05	8.23%	78.95%	46.72%	3.17%	13.27%	1.90%	21.05%	6.90%
Heathcare Information and Technology	127	0.95	7.63%	83.51%	70.49%	4.17%	6.35%	2.50%	16.49%	6.79%
Homebuilding	35	1.29	9.57%	62.20%	53.78%	3.67%	18.11%	2.20%	37.80%	6.78%
Hospitals/Healthcare Facilities	56	0.97	7.76%	56.95%	43.11%	3.17%	10.93%	1.90%	43.05%	5.24%
Hotel/Gaming	80	1.18	8.96%	64.67%	49.55%	3.17%	11.41%	1.90%	35.33%	6.47%
Household Products	135	1.03	8.08%	84.11%	61.63%	3.67%	10.46%	2.20%	15.89%	7.15%
Information Services	67	1.11	8.58%	88.25%	42.71%	3.17%	17.93%	1.90%	11.75%	7.80%
Insurance (General)	24	1.03	8.09%	69.91%	35.35%	3.17%	19.21%	1.90%	30.09%	6.23%
Insurance (Life)	25	1.04	8.16%	58.40%	34.48%	3.17%	24.30%	1.90%	41.60%	5.56%
Insurance (Prop/Cas.)	52	0.83	6.94%	75.24%	36.73%	3.17%	22.18%	1.90%	24.76%	5.69%
Investments & Asset Management	148	1.10	8.48%	57.45%	41.63%	3.17%	6.84%	1.90%	42.55%	5.68%
Machinery	137	1.23	9.22%	83.03%	46.22%	3.17%	15.64%	1.90%	16.97%	7.98%
Metals & Mining	124	1.28	9.54%	66.36%	74.49%	4.17%	1.80%	2.50%	33.64%	7.17%
Office Equipment & Services	25	1.34	9.89%	65.84%	49.87%	3.17%	18.65%	1.90%	34.16%	7.16%
Oil/Gas (Integrated)	8	0.81	6.81%	90.04%	33.56%	3.17%	14.56%	1.90%	9.96%	6.33%
Oil/Gas (Production and Exploration)	392	1.27	9.45%	67.49%	71.93%	4.17%	7.04%	2.50%	32.51%	7.19%
Oil/Gas Distribution	85	0.96	7.71%	67.68%	43.15%	3.17%	4.68%	1.90%	32.32%	5.84%
Oilfield Svcs/Equip.	161	1.54	11.04%	78.35%	65.23%	4.17%	10.99%	2.50%	21.65%	9.19%
Packaging & Container	26	0.95	7.62%	67.30%	31.06%	3.17%	18.18%	1.90%	32.70%	5.75%
Paper/Forest Products	22	0.84	6.97%	66.22%	44.94%	3.17%	11.54%	1.90%	33.78%	5.26%
Power	82	0.83	6.94%	56.90%	29.70%	3.17%	20.77%	1.90%	43.10%	4.77%
Precious Metals	147	1.29	9.61%	71.02%	93.69%	5.17%	1.33%	3.10%	28.98%	7.72%
Publshing & Newspapers	43	1.15	8.77%	67.85%	50.42%	3.67%	14.93%	2.20%	32.15%	6.66%
R.E.I.T.	213	0.79	6.69%	53.05%	31.55%	3.17%	1.24%	1.90%	46.95%	4.44%
Real Estate (Development)	18	1.02	8.04%	68.77%	43.65%	3.17%	7.21%	1.90%	31.23%	6.13%
Real Estate (General/Diversified)	11	1.82	12.63%	78.39%	45.97%	3.17%	9.39%	1.90%	21.61%	10.31%
Real Estate (Operations & Services)	52	1.30	9.66%	63.56%	50.05%	3.67%	8.63%	2.20%	36.44%	6.94%
Recreation	68	1.21	9.14%	75.97%	50.41%	3.67%	11.25%	2.20%	24.03%	7.47%
Reinsurance	4	1.35	9.91%	72.68%	21.20%	2.67%	15.53%	1.60%	27.32%	7.64%
Restaurant/Dining	79	0.89	7.30%	78.20%	44.43%	3.17%	15.14%	1.90%	21.80%	6.13%
Retail (Automotive)	30	1.18	8.93%	66.58%	48.06%	3.17%	18.76%	1.90%	33.42%	6.58%
Retail (Building Supply)	5	1.44	10.46%	83.71%	50.71%	3.67%	30.64%	2.20%	16.29%	9.12%
Retail (Distributors)	90	1.12	8.58%	67.57%	52.06%	3.67%	16.84%	2.20%	32.43%	6.51%
Retail (General)	23	1.03	8.10%	76.12%	46.36%	3.17%	21.36%	1.90%	23.88%	6.62%
Retail (Grocery and Food)	21	1.05	8.20%	64.05%	51.83%	3.67%	22.94%	2.20%	35.95%	6.04%
Retail (Online)	46	1.40	10.19%	93.01%	70.16%	4.17%	9.38%	2.50%	6.99%	9.65%
Retail (Special Lines)	128	1.07	8.35%	70.70%	51.42%	3.67%	20.44%	2.20%	29.30%	6.55%
Rubber& Tires	4	1.02	8.04%	53.26%	49.54%	3.17%	13.58%	1.90%	46.74%	5.17%
Semiconductor	100	1.21	9.15%	90.29%	57.12%	3.67%	10.11%	2.20%	9.71%	8.48%
Semiconductor Equip	47	1.23	9.26%	85.01%	60.18%	3.67%	6.88%	2.20%	14.99%	8.20%
Shipbuilding & Marine	14	1.36	10.00%	65.10%	71.45%	4.17%	6.75%	2.50%	34.90%	7.38%
Shoe	13	0.84	7.01%	93.16%	40.80%	3.17%	20.15%	1.90%	6.84%	6.66%
Software (Entertainment)	20	1.12	8.58%	85.25%	69.84%	4.17%	1.46%	2.50%	14.75%	7.68%
Software (Internet)	327	1.29	9.57%	94.71%	72.48%	4.17%	5.07%	2.50%	5.29%	9.19%
Software (System & Application)	259	1.10	8.52%	91.16%	61.85%	3.67%	6.86%	2.20%	8.84%	7.96%
Steel	40	1.31	9.72%	60.96%	52.45%	3.67%	13.99%	2.20%	39.04%	6.78%
Telecom (Wireless)	21	1.15	8.78%	39.31%	53.05%	3.67%	5.76%	2.20%	60.69%	4.79%
Telecom. Equipment	126	1.24	9.32%	89.51%	62.74%	3.67%	8.70%	2.20%	10.49%	8.57%
Telecom. Services	77	1.07	8.31%	60.45%	55.60%	3.67%	11.83%	2.20%	39.55%	5.90%
Tobacco	20	1.09	8.41%	83.51%	41.74%	3.17%	12.39%	1.90%	16.49%	7.34%
Transportation	21	0.86	7.10%	82.62%	42.36%	3.17%	20.08%	1.90%	17.38%	6.20%
Transportation (Railroads)	10	1.05	8.19%	83.19%	30.73%	3.17%	21.30%	1.90%	16.81%	7.14%
Trucking	30	1.32	9.78%	60.00%	48.49%	3.17%	27.38%	1.90%	40.00%	6.63%
Unclassified	8	0.10	2.77%	79.20%	NA	#N/A	3.93%	#N/A	20.80%	#N/A
Utility (General)	21	0.59	5.58%	62.00%	23.02%	2.67%	30.59%	1.60%	38.00%	4.07%
Utility (Water)	19	1.09	8.41%	66.59%	38.21%	3.17%	15.10%	1.90%	33.41%	6.24%
Total Market	7887	1.06	8.29%	60.19%	53.60%	3.67%	10.76%	2.20%	39.81%	5.87%

In Activity 6.2.4 you were exposed to the Cost of Capital by Sector (Links to an external site.). One of the columns provides the percentage of debt financing by industry (D/(D+E)). There are several industries with low percentages of debt financing. Take a look and identify some with a low percentage of debt financing and do the same with firms that have a high percentage of debt financing (the average according to the data in the link is about 42 percent).

Note: Do not use the banking financial services industries.

Based on the types of firms that use a small amount of debt and those that use higher amounts of debt, what can you conclude? What is it about the firms that use low amounts of debt? More debt would lower their cost of capital so what is holding these firms back form taking on more debt? You need to think a little, do not simply say the firms with low debt are all in industry x or industries similar to x. That is obvious, what is the economic intuition? What is the story?