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Estimate the cost of equity capital and estimate the weighted-average cost of capital (WACC). please prepare a table showing relevant variables Facts and Assumptions Yield
Estimate the cost of equity capital and estimate the weighted-average cost of capital (WACC). please prepare a table showing relevant variables
Facts and Assumptions Yield to maturity on long-term government bonds Yield to maturity on company long-term bonds Coupon rate on company long-term bonds Market price of risk, or risk premium Estimated company equity beta Stock price per share Number of shares outstanding (million) Book value of equity (million) Book value of interest-bearing debt (million) Tax rate 4.54% 6.32% 7.50% 6.30% 1.05 $25.97 681.2 $4.965 $6.674 35.0%Step by Step Solution
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