Question
PLEASE HELP ASAP ONLY 10 MINUTES LEFT 1. Calculate the WACC of Dracula Enterprises from the following information using both the CAPM model and Discounted
PLEASE HELP ASAP ONLY 10 MINUTES LEFT
1. Calculate the WACC of Dracula Enterprises from the following information using both the CAPM model and Discounted Cash flow Method. The tax rate is 28 %. The company has issued 5-year AA rated debt of $ 400,000 which is trading at a discount of 7 %. The company has issued 70,000 shares with a par value of $ 10 and have been issued one before. The book value of the equity is 700,000 The shares are trading at a value of $ 43 per share. Given the interest rate component information below, determine the yield on a 5-year, A-rated bond. Risk free rate 5.9% Inflation premium 4.5% 5-year Maturity Risk Premium 2.0% 1-year Maturity Risk Premium 1.25 % AA Default Risk Premium 0.6% A Default Risk Premium 1.3% The return on the market was 10 % for the year The beta of Dracula Enterprises is 1.43 The recent dividend paid by the company was $ 3.00 and the next year dividend will be $ 3.5
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