Question
Estimate the WACC and value of Molycorp. Inc Is the $11.49 share price reasonable? Use the following assumptions and other data given in the case.
Estimate the WACC and value of Molycorp. Inc Is the $11.49 share price reasonable?
Use the following assumptions and other data given in the case.
Tax rate 35%
Risk-free rate 2.65%
Market risk premium 6%
Beta of Molycorps debt 0.30
Target capital structure 25% Debt, 75% equity
what are the required data for the solution of this one
Cost of Debt is 7.14%
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Handbook Of Research In Education Finance And Policy
Authors: Helen F. Ladd, Margaret E. Goertz
2nd Edition
0415838010, 978-0415838016
