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How do I calculate the weight of equity and debt base on the information below? Note: Total shareholders equity includes common and preferred stock. Assume
How do I calculate the weight of equity and debt base on the information below?
Note:
- Total shareholders equity includes common and preferred stock.
- Assume that common stock and preferred stock have the same return.
Also, how do I calculate the find the firms annual cost of debt using a coupon rate?
- Coupon rate 4.65%
- Assume the company has a 35% tax rate. (Assume that all the firms long-term debt has the same cost as the bond you evaluated).
How to calculate WACC using the information below?
Sharesholders equity (Common Stock) | 2,810 |
Total debt (Bonds) | 2,492 |
Debt to equity | 88.7% |
Total Capital | 5,301 |
Debt to capital | 47% |
Coupon Rate | 4.65% |
Tax rate | 35% |
Annual CAPM | 0.1594 |
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