Question
Determine the weighted average cost of debt for Tesla using the book value weights and market value weights assuming Tesla is in the tax brackets
- Determine the weighted average cost of debt for Tesla using the book value weights and market value weights assuming Tesla is in the tax brackets of 28%.
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| Maturity Year | Book value | Quoted price | YTM |
| 2019 |
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| 2021 |
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| BV of debt (balance sheet)(million) |
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| BV per share |
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| Stock price |
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| Market capitalization (billions) |
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| Shares outstanding (millions) |
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| Most recent dividend |
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| Beta |
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| 3-month Treasury bill rate |
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| Market risk premium |
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| Tax rate |
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
