Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I did this question and got both of the answers wrong. can you get the correct answer within the next 15-30 mins. thanks need the

I did this question and got both of the answers wrong. can you get the correct answer within the next 15-30 mins. thanks
image text in transcribed
need the answers asap
image text in transcribed
is anyone working on this?
fiee rate 62.5% and the expected markot premiurn is 5%. Kelloggs stock clesed at 580.19 on December 31, 2015. On that same dofe, the company had 420,315,539 shares istred, of which 70,291,514 shares were in treasury. 3. What is Keloges toeal market capitaication as of December 31,2015 ? tnter answer in billions, rouncing to soe decimal pisce. x tillion b. Compute kellozss wacic: Use yout raundes answer above for computation. Pound answee to one detrial plate (ec: 0.0245=2516. 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 , Keebler), and Cheez-It. The company, with over $13.5 billion in annual sales worldwide, partially finances its operation through the issuance of debt. At the beginning of its 2015 fiscal year, it had $6.5 billion in total debt. At the end of fiscal year 2015 , its total debt had increased to $6.6 billion. Its fiscal 2015 interest expense was $227 million, and its assumed statutory tax rate was 37%. Kellogg has an estimated market beta of 0.70. Assume that the expected risk-free rate is 2.5% and the expected market premium is 5%. Kellogg's stock closed at $80.19 on December 31,2015 . On that same date, the company had 420,315,589 shares issued, of which 70,291,514 shares were in treasury. a. What is Kellogg's total market capitalization as of December 31, 2015? Enter answer in billions, rounding to one decimal place. x billion b. Compute Kellogg's WACC. Use your rounded answer above for computation. Round answer to one decimal place (ex: 0.0245=2.5% ). \%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Financial Machine Learning

Authors: Marcos Lopez De Prado

1st Edition

1119482089, 978-1119482086

More Books

Students also viewed these Finance questions

Question

What is the meaning and definition of E-Business?

Answered: 1 week ago

Question

Describe the seven standard parts of a letter.

Answered: 1 week ago

Question

Explain how to develop effective Internet-based messages.

Answered: 1 week ago

Question

Identify the advantages and disadvantages of written messages.

Answered: 1 week ago