I need help only with F-H (A-E are completed in the excel table Below)

2. Cost of Capital and Optimal Capital Structure

a. Using balance sheet book value of long-term debt and stockholders equity, calculate CHDs capital structure for E/V and D/V for the past two years.

b. Recalculate E/V and D/V using CHDs current market capitalization of stock in place of the book value of stockholders equity employed in part a.

c. Review the bond ratings and market yields to maturity of CHDs bonds from FINRA to estimate an approximate (long-term) RD in the current financial market environment.

d. Estimate CHDs required return on equity (i.e. RE) using the dividend discount model (i.e. D/P + g). You will need a dividend yield (e.g. Yahoo Finance) and an approximate growth rate. The analyst believes that CHDs rapid historical growth rates of DPS and EPS will remain strong but naturally slow down by about one-third going forward.

e. Estimate CHDs required return on equity using the CAPM. Note that it is a good idea to get multiple perspectives on beta. Assume the market risk premium is around 7%, but be aware that the risk-free rate is unsustainably low if measured by the 10-year US Treasury yield in todays market. Another consideration is that the analyst has seen CHD beta estimates from certain services that appear too low and plans to use an adjusted beta that increases the beta by one-third of its difference from a beta of one.

f. Using your judgment based on finance concepts and the information in parts d and e above, provide and justify a reasonable range for RE.

g. Put all the information from parts a-f above into calculations for a fair range of CHDs WACC and briefly explain your results in terms of whether these WACC rates fairly capture CHDs risk profile from your analysis in Parts 1 and 2 thus far.

h. Provide brief commentary based on your overall analysis of whether you believe that CHDs capital structure of debt versus equity weights is fairly optimal.

a. 5% compund growth for 8% compound growth 9% compund growth 10% compund growth revenue from 2011-2015 for revenue from 2016-2019 for DPS from 2011-2019 for EPS from 2011-2019 In the Millions 2020 2019 LTD 1812.5 1810.2 SE 3020.4 2667.8 LTD + SE 4832.9 4478.0 D/V 37.50% 40.42% E/V 62.50% 59.58% b. In the Millions P=88.18 1813.1 S/o = 245.25 LTD SE 21626.1 LTD + SE D/V E/V 23439.2 7.74% 92.26% C. FINRA Analysis 3.15% P = 88.18 D = 1.01 g = 7.85% d. D. = D. (1+g) Re = D/P, +g 1.09 9.09% R; = 1.64 E(R)-R; = 6.36% B;= .71 E(R) = R4 +[E(RM)-R] x B; 6.16% a. 5% compund growth for 8% compound growth 9% compund growth 10% compund growth revenue from 2011-2015 for revenue from 2016-2019 for DPS from 2011-2019 for EPS from 2011-2019 In the Millions 2020 2019 LTD 1812.5 1810.2 SE 3020.4 2667.8 LTD + SE 4832.9 4478.0 D/V 37.50% 40.42% E/V 62.50% 59.58% b. In the Millions P=88.18 1813.1 S/o = 245.25 LTD SE 21626.1 LTD + SE D/V E/V 23439.2 7.74% 92.26% C. FINRA Analysis 3.15% P = 88.18 D = 1.01 g = 7.85% d. D. = D. (1+g) Re = D/P, +g 1.09 9.09% R; = 1.64 E(R)-R; = 6.36% B;= .71 E(R) = R4 +[E(RM)-R] x B; 6.16%