Question
is it possible to get assistance with this for Lyondellbasell? Please let me know if i am missing anything that could potentially help. I believe
is it possible to get assistance with this for Lyondellbasell? Please let me know if i am missing anything that could potentially help. I believe the WACC is 7.73%
- Estimate the firms before-tax and after-tax component cost of debt; (Note: If the information about the current corporate tax rate is not available, you need to estimate the tax rate based on the historical tax payments).
- Estimate the firms component cost of preferred stock if the firm has issued preferred stocks.
- Use three approaches (CAPM, DCF, bond-yield-plus-risk-premium) to estimate the component cost of common equity for the firm.
- Calculate the firms weighted average cost of capital (WACC) using the market-based capital structure weights.
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