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I am trying to calculate cost of capital, is this the proper way? I am looking for the pretax borrowing rate for debt for the
I am trying to calculate cost of capital, is this the proper way? I am looking for the pretax borrowing rate for debt for the Nintendo Company for the 2021 FY. The zero's below indicate missing information.
Cost of Capital Calculations
Cost of Capital: ($ in millions)
Cost of Debt Capital
Tax rate = 29.49% (Tax expense / Net income before taxes) Pretax borrowing rate for debt = 0% (Interest expense / Average amount of interest-bearing debt) Rd = Pretax borrowing rate for debt * (1 Tax rate) Rd = * (1-29.49%) = 0%
Rd = 0%
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