Kashmiri's Cost of Capital. Kashmiri is the largest and most successful specialty goods company based in Bangalore, India. It has not yet entered the North American marketplace, but is considering establishing both manufacturing and distribution facilities in the United States through a wholly owned subsidiary. It has approached two different investment banking advisors, Goldman Sachs and Bank of New York, for estimates of what its costs of capital would be several years into the future when it planned to list its American subsidiary on a U.S. stock exchange. Using the assumptions by the two different advisors in the popup window, calculate the prospective costs of debt, equity, and the WACC for Kashmiri (U.s.). What is the after-tax cost of debt estimated by Goldman Sachs for Kashmiri? % (Round to two decimal places.) What is the after-tax cost of debt estimated by Bank of New York for Kashmin? % (Round to two decimal places.) What is the cost of equity estimated by Goldman Sachs for Kashmir? % (Round to two decimal places) What is the cost of equity estimated by Bank of New York for Kashmir? % (Round to two decimal places.) What is the WACC estimated by Goldman Sachs for Kashmiri? % (Round to two decimal places.) What is the WACC estimated by Bank of New York for Kashmir? % (Round to two decimal places.) Enter your answer in each of the answer boxes ( dtv 28 - X pould be severe Irl's Cost of Capital. Kashmiri is the latest and most successful speciall.coods.company based in Bangalore India It has not yet entered th an marketplace, but is a owned subsidi ched two different inves Data Table when it planned to list its popup window ate the prospective costs is the after-tax cost of de (Click on the icon to import the table into a spreadsheet.) (Round to two decimal Goldman Bank of Assumptions Symbol Sachs New York at is the after-tax cost of de Estimate of correlation Pym 0.88 0.48 between security and market % (Round to two decimal Estimate of standard 24.6% 30.7% deviation of Kashmiri's returns mat is the cost of equity estim Estimate of standard 17.5% 22.7% deviation of market's return % (Round to two decimal Risk-free rate of 3.7% 3.7% Interest Vhat is the cost of equity estim Estimate of Kashmiri's 7.3% 7.7% cost of debt in U.S. market % (Round to two decimal Estimate of market 8.6% 11.6% retum, forward-looking What is the WACC estimated Corporate tax rate 39% 39% DIV Proportion of debt 25% 35% % (Round to two decimal Proportion of equity ENV 75% 65% What is the WACC estimated % (Round to two decimal Print Done om KA ko t Enter your answer in each of them were
