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i was able to get part a, b & c all right. D is wrong and i need the answer is anyone working on this?
i was able to get part a, b & c all right. D is wrong and i need the answer
is anyone working on this?
this is due in 10 minutes can anyone solve it
Harley Davidson, Inc. (HOG) has $5.1 billion in total debt (which approximates its market value). Interest expense for the year was about $46.0 million. The company's market capitalization is approximately $11.0 billion, its market beta is 2.16, and its assumed tax rate is 37%. Assume that the risk-free rate equals 2.5% and the market premium equals 5%. Rounding Instructions: Do not round until your final answers. Round answers to one decimal place. (a) Estimate Harley Davidson's cost of debt capital. % (b) What does a beta of 2.16 mean regarding the volatility of Harley-Dtividson's stock price. Harley-Davidson's stock price decreases faster than the market index. Harley-Davidson's stock price follows the market index very closely. Harley-Davidson's stock price increases faster than the market index. Harley-Davidson's stock price tends to be volatile compared to the market index. (c) Estimate Harley-Davidson's cost of equity capital. (d) Using your rounded answers from (a) and (c) above, estimate Harley-Davidson's weight average cost of capital Step by Step Solution
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