Question
Please help! Consider the following financial data. US 10-Year T-Bond Yield = .63% Market Risk Premium = 6.25% Tax Rate = 21% Also the following
Please help!
Consider the following financial data. US 10-Year T-Bond Yield = .63% Market Risk Premium = 6.25% Tax Rate = 21% Also the following data for Salesforce, Inc. : Stock Price = $249.21 Market Cap = $226.78 billion Beta = 1.24 Moody's = A- (111 basis points) Total Debt = $6.19 billion Number of Shares Outstanding = 910 million EPS = $2.59 Return on Assets = .93% Total Debt/Equity = 16.10 Current Ratio = 1.14 Book Value/share = $42.33 Revenues =$19.38 billion Price/Earning Multiple = 96.22
(1A) Calculate the Cost of Capital for Salesforce, Inc. Choose the best answer from the list below.
1.37%
1.74%
8.38%
8.19%
7.75%
1(B) Using the Salesforce, Inc. financial profile information above, what is the Market Value Added (MVA) for Salesforce?
$312.97B
$173.48B
$226.78B
$188.26B
$232.97B
Thank you very much!
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