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Estimating the Weighted Average Cost of Capital Kellogg Company manufactures cereal and other convenience food under its many well - known brands such as Kellogg's
Estimating the Weighted Average Cost of Capital
Kellogg Company manufactures cereal and other convenience food under its many wellknown brands such as Kellogg's Keebler and Cheezlt The company, with over $ billion in annual sales
billion. Its fiscal interest expense was $ million, and its assumed statutory tax rate was Kellogg has an estimated market beta of Assume that the expected riskfree rate is and the
expected market premium is
Kellogg's stock closed at $ on December On that same date, the company had shares issued, of which shares were in treasury.
a What is Kellogg's total market capitalization as of December
Enter answer in billions, rounding to one decimal place.
$
billion
b Compute Kellogg's WACC.
Use your rounded answer above for computation.
Round answer to one decimal place ex:
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