Question
Please help by showing how to compute with formulas inside of excel. I can't seem to input the formulas correctly to match up with the
Please help by showing how to compute with formulas inside of excel. I can't seem to input the formulas correctly to match up with the answers.
A. What is the cost of equity of a company whose shares are trading at 30.2 and which pays a dividend of 5 over five years and 6 after 5 years?
B. What is the cost of debt for a company whose debt 11% has a nominal value of 1000, is trading at 1037.9 and has a life of five years (redemption at maturity)?
C. Use the answers to questions 1. and A) and calculate the cost of capital of this company. The company has issued 1000 shares, the corporate tax rate is 34%
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