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I NEED HELP FIGURING OUT HOW TO DO THIS. IF SOMEONE COULD WRITE ON THE FORMULAS OR SOMETHING. A B Calculating Amgen's WACC 2 E(rM)
I NEED HELP FIGURING OUT HOW TO DO THIS. IF SOMEONE COULD WRITE ON THE FORMULAS OR SOMETHING.
A B Calculating Amgen's WACC 2 E(rM) 0.08 3 rf 0.02 4 Tax rate 0.45 5 Equity Beta 0.82 6 Market value of stock 58.34 7 Market value of equity 75,258,600,000.00 8 Outstanding shares 1,290,000,000.00 9 Book value per share 14.70 10 Total book value of equity 18,963,000,000.00 11 Debt to equity ratio (book) 0.16 12 Amgen's debt 3,034,080,000.00 13 Amgen's total value 78,292,680,000.00 14 15 Interest paid, 2002 44,200,000.00 16 Debt, end -2002 3,034,700,000.00 17 Debt, end -2001 223,000,000.00 18 19 20 Method 1: Traditional approach 21 rE 6.92% 22 percentage of equity 23 percentage of debt 24 rD 25 tax rate 26 WACC 27 Method 2: use compnay's 29 E 30 D 31 percentage of equity 32 percentage of debt 33 tax rate 34 passe 35 WACC 36 A B Calculating Amgen's WACC 2 E(rM) 0.08 3 rf 0.02 4 Tax rate 0.45 5 Equity Beta 0.82 6 Market value of stock 58.34 7 Market value of equity 75,258,600,000.00 8 Outstanding shares 1,290,000,000.00 9 Book value per share 14.70 10 Total book value of equity 18,963,000,000.00 11 Debt to equity ratio (book) 0.16 12 Amgen's debt 3,034,080,000.00 13 Amgen's total value 78,292,680,000.00 14 15 Interest paid, 2002 44,200,000.00 16 Debt, end -2002 3,034,700,000.00 17 Debt, end -2001 223,000,000.00 18 19 20 Method 1: Traditional approach 21 rE 6.92% 22 percentage of equity 23 percentage of debt 24 rD 25 tax rate 26 WACC 27 Method 2: use compnay's 29 E 30 D 31 percentage of equity 32 percentage of debt 33 tax rate 34 passe 35 WACC 36Step by Step Solution
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