need to see how to do #4
In this assignment, you estimate the weighted average cost of capital (WACC) for Microsoft, Campbell Soup and Merck. Assume their before-tax costs of debt are (in the same order): 2.2%, 3%, and 2.5%. 1. Compute the market value of equity using the average of the last years's closing prices for the sample stocks downloaded from finance.yahoo.com the same way as you did in the Module 2 assignment, multiplied by the number of share outstanding which you can find in finance.yahoo.com "Key Statistics" section 2. Compute the Net Debt using the latest balance sheet numbers you find on the SEC EDGAR website as you did in Module 1 assignment 3. Compute the equity weight E% and debt weight D% 4. Use the 5-year period monthly stock return data you collected and calculated in Module 2 assignment and linear regression to estimate the betas of these three stocks. 5. Calculate the WACC for these three firms. In this assignment, you estimate the weighted average cost of capital (WACC) for Microsoft, Campbell Soup and Merck. Assume their before-tax costs of debt are (in the same order): 2.2%, 3%, and 2.5%. 1. Compute the market value of equity using the average of the last years's closing prices for the sample stocks downloaded from finance.yahoo.com the same way as you did in the Module 2 assignment, multiplied by the number of share outstanding which you can find in finance.yahoo.com "Key Statistics" section 2. Compute the Net Debt using the latest balance sheet numbers you find on the SEC EDGAR website as you did in Module 1 assignment 3. Compute the equity weight E% and debt weight D% 4. Use the 5-year period monthly stock return data you collected and calculated in Module 2 assignment and linear regression to estimate the betas of these three stocks. 5. Calculate the WACC for these three firms