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Nvidia s market capitalization is 1 . 8 0 trillion dollars. It has $ 1 1 billion debt outstanding. The 1 0 - year Treasury
Nvidias market capitalization is trillion dollars. It has $ billion debt outstanding. The year Treasury bond yield is Nvidia has an outstanding credit record and has earned an AAA rating from the major credit rating agencies. The current default premium on AAA corporate bonds is The historical risk premium for stocks over the riskfree rate of return is percentage points. The firms beta is estimated to be and its marginal tax rate, including federal, state, and local taxes is
a What is the cost of equity?
b What is the aftertax cost of debt?
c What is the cost of capital?
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