How to calculate Empirical Average Cost of Capital?
30% Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues 30,000,000 32000000 34000000 33000000 31000000 35000000 40000000 42000000 39500000 36000000 38000000 40000000 40000000 41000000 42000000 42400000 46000000 47000000 42000000 43000000 44000000 47000000 49000000 50000000 52000000 54000000 53000000 COGS 20000000 19500000 19000000 16500000 15500000 17500000 20000000 2100000000 19750000 18000000 19000000 20000000 20000000 22550000 23100000 23320000 25300000 25850000 23100000 23650000 24200000 25850000 26950000 27500000 31200000 32400000 31800000 Other expenses 1500000 1300000 1400000 1442000 1485260 1529818 1575712 1622984 1671673 1721823 1773478 1826682 1881483 1937927 1996065 2055947 2117626 2181154 2246589 2313987 2383406 2454908 2528556 2604412 2682545 2763021 2845912 Depreciation 1000000 1000000 1000000 1000000 1000000 1200000 1260000 1323000 1389150 1458608 1531538 1608115 1688521 1772947 1861594 1954674 2052407 2155028 2262779 2375918 2200000 2100000 2000000 1900000 1900000 1800000 1800000 Amortization 500000 400000 400000 400000 400000 400000 400000 400000 400000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 650000 660000 680000 720000 750000 740000 720000 Interest expenses 3000000 2900000 2800000 2828000 2856280 2884843 2913691 2942828 2972256 3001979 3031999 3062319 3092942 3123871 3155110 3186661 3218528 3250713 3283220 3316052 3349213 3382705 3416532 3450697 3485204 3520056 3555257 Tax rate BV of equity (t-1) Stock price (t-1) # of shares (t-1) ong-term debt (BV = MV) yeart-1 30% 30000000 40 1000000 25000000 30% 30000000 41 1000000 25200000 30% 30000000 415 1000000 25500000 30% 30000000 41 1000000 25755000 30% 30000000 42 1000000 26012550 30% 30000000 43 10000000 26272676 30% 30000000 44 1000000 26535402 30% 30000000 42 1000000 26800756 30000000 41 1000000 27068764 30% 30000000 39 1000000 27339451 30% 300000000 39 1000000 27612846 30% 30000000 40 1000000 27888974 30% 30000000 41 1000000 28167864 30% 30000000 42 1000000 28449543 28% 30000000 43 1000000 27500000 28% 30000000 44 1000000 27500000 28% 30000000 45 10000000 27500000 28% 30000000 46 1000000 27500000 28% 30000000 47 1000000 27500000 28% 40000000 45 1300000 25000000 28% 40000000 47 1300000 25000000 28% 40000000 49 1300000 25000000 78% 40000000 51 1300000 25000000 28% 40000000 52 1300000 25000000 28% 40000000 53 13000000 25000000 28% 40000000 53 1300000 25000000 28% 40000000 55 1300000 25000000 30% Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues 30,000,000 32000000 34000000 33000000 31000000 35000000 40000000 42000000 39500000 36000000 38000000 40000000 40000000 41000000 42000000 42400000 46000000 47000000 42000000 43000000 44000000 47000000 49000000 50000000 52000000 54000000 53000000 COGS 20000000 19500000 19000000 16500000 15500000 17500000 20000000 2100000000 19750000 18000000 19000000 20000000 20000000 22550000 23100000 23320000 25300000 25850000 23100000 23650000 24200000 25850000 26950000 27500000 31200000 32400000 31800000 Other expenses 1500000 1300000 1400000 1442000 1485260 1529818 1575712 1622984 1671673 1721823 1773478 1826682 1881483 1937927 1996065 2055947 2117626 2181154 2246589 2313987 2383406 2454908 2528556 2604412 2682545 2763021 2845912 Depreciation 1000000 1000000 1000000 1000000 1000000 1200000 1260000 1323000 1389150 1458608 1531538 1608115 1688521 1772947 1861594 1954674 2052407 2155028 2262779 2375918 2200000 2100000 2000000 1900000 1900000 1800000 1800000 Amortization 500000 400000 400000 400000 400000 400000 400000 400000 400000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 600000 650000 660000 680000 720000 750000 740000 720000 Interest expenses 3000000 2900000 2800000 2828000 2856280 2884843 2913691 2942828 2972256 3001979 3031999 3062319 3092942 3123871 3155110 3186661 3218528 3250713 3283220 3316052 3349213 3382705 3416532 3450697 3485204 3520056 3555257 Tax rate BV of equity (t-1) Stock price (t-1) # of shares (t-1) ong-term debt (BV = MV) yeart-1 30% 30000000 40 1000000 25000000 30% 30000000 41 1000000 25200000 30% 30000000 415 1000000 25500000 30% 30000000 41 1000000 25755000 30% 30000000 42 1000000 26012550 30% 30000000 43 10000000 26272676 30% 30000000 44 1000000 26535402 30% 30000000 42 1000000 26800756 30000000 41 1000000 27068764 30% 30000000 39 1000000 27339451 30% 300000000 39 1000000 27612846 30% 30000000 40 1000000 27888974 30% 30000000 41 1000000 28167864 30% 30000000 42 1000000 28449543 28% 30000000 43 1000000 27500000 28% 30000000 44 1000000 27500000 28% 30000000 45 10000000 27500000 28% 30000000 46 1000000 27500000 28% 30000000 47 1000000 27500000 28% 40000000 45 1300000 25000000 28% 40000000 47 1300000 25000000 28% 40000000 49 1300000 25000000 78% 40000000 51 1300000 25000000 28% 40000000 52 1300000 25000000 28% 40000000 53 13000000 25000000 28% 40000000 53 1300000 25000000 28% 40000000 55 1300000 25000000
