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How can I find/what are the formulas for these, and how should I go about explaining them? Using the privately-owned company from previous assignments; assess
How can I find/what are the formulas for these, and how should I go about explaining them?
Using the privately-owned company from previous assignments; assess the following: 1. Market Interest Rate (ra) = 2. Cost of Debt = 3. Cost of Preferred Stock (rp) = 4. Using CAPM model, find the Estimated Cost of Common Equity (rs) = 5. Bond-yield-plus-risk-premium estimate = 6. For their last stock issue, find the Cost of Newly Issued Common Stock (rs) 7. What is the overall, or weighted average, cost of capital (WACC)? Ignore flotation costs. 8. Using information above and from previous assignments), state your recommendations regarding investing in this company vs a t-bill. Using the privately-owned company from previous assignments; assess the following: 1. Market Interest Rate (ra) = 2. Cost of Debt = 3. Cost of Preferred Stock (rp) = 4. Using CAPM model, find the Estimated Cost of Common Equity (rs) = 5. Bond-yield-plus-risk-premium estimate = 6. For their last stock issue, find the Cost of Newly Issued Common Stock (rs) 7. What is the overall, or weighted average, cost of capital (WACC)? Ignore flotation costs. 8. Using information above and from previous assignments), state your recommendations regarding investing in this company vs a t-billStep by Step Solution
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