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Electrolux of Sweden. Kristian Thalen has just joined the corporate treasury group at Electrolux of Sweden, a multinational Swedish appliance maker. Electrolux is considering making

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Electrolux of Sweden. Kristian Thalen has just joined the corporate treasury group at Electrolux of Sweden, a multinational Swedish appliance maker. Electrolux is considering making an offer for GE's appliance business, and wants to revise its weighted average cost of capital for its analysis in its home currency, the Swedish kroner (SEK). Kristian has been assigned the task. Using the following assumptions, by step through the following questions. a. What is Electrolux's cost of debt, after-tax, in SEK? b. What is Electrolux's cost of equity in SEK? c. What is Electrolux's market capitalization? d. What is Electrolux's total value of equity outstanding? e. What proportion of Electrolux's capital structure is debt? f. What proportion of Electrolux's capital structure is equity? g. What is Electrolux's weighted average cost of capital? \begin{tabular}{lr} Component & Value \\ \hline Swedish kroner government bond yield (10-year) & 3.90% \\ Electrolux credit risk premium & 0.80% \\ Swedish corporate income tax rate & 34% \\ Electrolux beta & 1.45 \\ Swedish equity market risk premium (equity return over risk-free rate) & 3.80% \\ Electrolux shares outstanding & 279,280,000 \\ Electrolux share price & SEK 178.31 \\ Electrolux debt outstanding & SEK 11,665,000,000 \\ \hline \end{tabular}

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