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I need help with my homework. I dont understand where to get the numbers to plug them into the formulas. Requires Rate of Return, WAAC,
I need help with my homework. I dont understand where to get the numbers to plug them into the formulas.
Requires Rate of Return, WAAC, and Concept Risk and Reward
Examine the financials from ULTA
Use values given in your financial Statements
a Determine the Cost of Equity using
a Constant Growth Model Dividend Discount Model
a Capital Asset Pricing Model CAPM
aa Use for RiskFree Rate
ab Use the increase of ULTA's Value from to
ac Look up ULTA's BETA on yahoo Finance
b Determine Cost of Dept using
bondsupermart.com
b What is the average rate of return for ULTA's Bonds
b What is the average length of time of ULTA's bonds
c Determine Cost of Preferred Stock
Can be found in statement of retained earnings. Company may not have preferred stock.
d Determine amount weighting of all capital assets for the following categories
d Common Stock
d Preferred Stock
d Debt
Using information gathered above, determine WACC
Interpret WACC data point
Describe the principle of risk return. Using ULTA as an example, explain what risk and return actually mean to the company.
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