Question
Estimate UnitedHealth Groups approximate WACC; use the most recent years debt ratio to find the weights of debt and equity. If your company issues preferred
Estimate UnitedHealth Groups approximate WACC; use the most recent years debt ratio to find the weights of debt and equity. If your company issues preferred stock, for simplicitys sake, ignore it. The cost of debt will be the approximate YTM .Use CAPM to calculate your companys required rate of return on stock. The beta was determined in Week 6; use the current 10-year Treasury bonds YTM as the risk-free rate.
YTM- Average Current Yield 4.1343
BETA- 0.88
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch
5th Edition
0130464147, 978-0130464149
