Question
My company is Raytheon I would like to know the optimum capital structure using theHamadas Equation to recalculate the levered betas based on the weights
My company is Raytheon I would like to know the optimum capital structure using theHamadas Equation to recalculate the levered betas based on the weights that you choose.
NOTE: You cannot just assume that your weights and your bond values are the same as the sample. You must choose the appropriate weights first based on the market value weights your firm currently has. Then, you must choose appropriate bond rates as you increase or decrease the weight for debt.
You must explain and reference how you chose your numbers and attach a copy of the spreadsheet.
Note that the spreadsheet has all the calculations for the WACC on the top portion, but Hamadas Equation only uses the CAPM to refigure the levered beta and the new WACC for that beta.
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