Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please compute our current weighted average cost of capital. Below are a few assumptions that you may need. Compute only for the company LAS VEGAS

Please compute our current weighted average cost of capital. Below are a few assumptions that you may need. Compute only for the company LAS VEGAS SANDS. (picture included has the balance sheet and income statement for the company).
Assume taxes will continue to be paid at our current rate of 12.4%.
Our accrued expenses contain four major components: $540 million in outstanding chip liabilities, $600 million in accrued payroll, and $582 million in accrued customer deposits, and $674 million in accrued interest.
Outstanding chip liabilities and accrued customer deposits do not accrue interest and effectively have a 0% cost. Although we are unable to either increase or decrease the amount of these.
Assume that current maturities of long-term debt have the same cost of capital as our long-term debt itself.
Assume that our other long-term liabilities have a similar cost of capital to our typical bond offering.
Assume that noncontrolling interest have a similar cost of capital to our other equity interests.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions