Question
In August of 2018, Guru Focus reported the following facts for Vail Resorts (MTN): Market capitalization was $12035.620 Mil. Current Portion of Long-Term Debt was
In August of 2018, Guru Focus reported the following facts for Vail Resorts (MTN):
Market capitalization was $12035.620 Mil.
Current Portion of Long-Term Debt was $25.8755 Mil
Their two-year average Long-Term Debt & Capital Lease Obligation was $960.4665 Mil.
The company does not have preferred shares.
10-Year Treasury Constant Maturity Rate was 2.89%
Vails beta was 0.44
Market premium was estimated to be 6%.
Interest expense was $54.089 Mil.
Two-year Average Tax Rate was 35.95%.
Calculate and label Vail Resorts total book value of debt, capital structure weights of debt and equity, CAPM, cost of debt, and WACC. Discuss why you might need to do sensitivity analysis on these numbers and which variables you would test
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