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I've done all of the above problems. I need help with the problems below this statement please. Thank you! Financial Analysis Exercise IV Here again
I've done all of the above problems. I need help with the problems below this statement please. Thank you!
Financial Analysis Exercise IV Here again is the formula for WACC. For simplicity the term for preferred stock has been removed. WACC E +D E +D 1. Go to http://thatswacc.com/l and enter the ticker symbol for the stock you selected and click on the tab entitled "Calculate WACC." 2. Complete the following tables Name of Company Stock Verizon Ticker Symbol From the h thatswacc.com/results for your company 5.32% WACC Cost of debt, in 4.4034% Corporate tax rate, TC 28.315 otal Total equity, E S20,460,000 Total firm value. V S307,787,000 654% Cost of equity, iE CAPM Components Beta 0.36 Historical market return, M Assumed 11% Risk-free rate Assumed 3% i 3. Using data in the table confirm the accuracy of the site's WACC calculation: Weight of Equity 16.10% S8,309,135.40 Weighted Average Cost of Equity Weight of Debt 83.90% 3.69% Pre-Tax Weighted Average Cost of Debt E D The accessibility of this site is assumed. Should it not be accessible, please follow the instructions in the Appendix at the end of this documentStep by Step Solution
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