Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help finding WACC? Please include steps on how it was calculated. Step 1 i risk free rate (?-year Treasury Yield) -0.92% ii equity beta
Need help finding WACC? Please include steps on how it was calculated.
Step 1 | |||
i | risk free rate (?-year Treasury Yield) | -0.92% | |
ii | equity beta | 1.21 | |
iii | expected market risk premium | 4.00% | |
cost of equity rE | 3.92% | ||
Step 2 | Moody's Rating (if available) | Aa1 | |
debt beta | 0.05 | ||
cost of debt rD | -0.72% | ||
Step 3.1 | Latest Fiscal Year | ||
Cash and Short-Term Investments | -$10,435 | USD million | |
Debt in Current Liabilities | $15,229 | USD million | |
Long-Term Debt - Total | $107,049 | USD million | |
Net Debt | $132,713 | USD million | |
Step 3.2 | Stock Price | $142 | USD |
Shares Outstanding | 16,976.763 | millions | |
Market Value of Equity | $2,402,212 | USD million | |
Step 3.3 | Enterprise Value | $132,713 | USD million |
265,426.00 | |||
Step 4 | Tax rate | 21% | |
WACC |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started