Question
Determine the following utilizing General Electric Co. information Cost of Equity (Common Stock) oBeta from Regression and two Betas from analysts oBeta Chosen for CAPM
Determine the following utilizing General Electric Co. information
Cost of Equity (Common Stock)
oBeta from Regression and two Betas from analysts
oBeta Chosen for CAPM and why
oCapital Assets Pricing Model (include how determined RF and[ RM or (RM - RF)]
oDiscounted Cash Flow (DCF) (only if dividends - include how determined)
oOwn-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)
Cost of Preferred Stock
Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)
Market Value of Debt (will have calculated above, but will need to add any long term leases from balance sheet to get total market value of debt)
Market Value of Equity
Market Value of Preferred Stock
Value of Firm
Firm's Tax Rate (explain how determined)
Weight for Equity
Weight for Preferred Stock
Weight for Debt
WACC (Weighted Average Cost of Capital)
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
9780135811603
