Please please help me to solve this case..................................................................................................................................................
Most publicly traded corporations are required to submit toQ ( quarterly and LOK Cannual reports to the SEC detailing their financial operations over the previous quarter or year respectively . These corporate filings are available on the SEC website at www . see you Go to the SEC website . follow the " Search for Company Filings " link and the " Companies & Other Filers " link , enter Tesla and search for SEC filings made by Tesla Find the most recent 109 and IOK and download the forms . Look on the balance sheet to find the book value of debt and the book value of equity . If you look further down the report . you should find a section filled either Long Term Debt " or Long Term Debt and Interest Rate Risk Management " that will list a breakdown of Tesla's long-term debi To estimate the cost of equity for Tesla go to finance yahoo com and enter the ticker sym - ficient bol TSI A " Follow the various links to find answers to the following questions What i the most recent stock price listed for Tesla ? What is the market value of equity or market apitalization ? How many shares of stack does Testa have outstanding ? What is the beta for Tesla ? Now go back to finance yahoo . com and follow the " Bonds " link What is the and Beh yield on 3 - month Treasury bills ? Using a7 percent market risk premium , what is the cost of equity for Tesla using the CAPM ? Go to www . reuters . com and find the list of competitors in the industry Find the here for each of these competitors . and then calculate the industry average beta Using the industry average what is the average bela what is the cost of equity . Does it matter if you use the beta for Tesla of of the ASDAQ stock market was held for the industry in this case ? About 23 percent . 14 p You now need to calculate the cost of debt for Tesla . Go to finra - markets morningstar com Band Center Results jap enter Tesla as the company and find the yield to maturity TELL from 1996 10 1999 , rest for each of Tesla's bonds What is the weighted average cost of debt for Tesla using the book value weight the market value weights ? Does it make a difference in this case and the market value can came to a jarring he if you use book value weights or market value weights ? percent in 2060 . followed You now have all the necessary information to calculate the weighted average cost of BOOK on index of Ineed capital for Tesla Calculate the weighted average cost of capital for SMI using book value weights and market value weights assuming SAT has a 25 percent marginal tax rate Which Every 1986 20 1 100 cost of capital number is more relevant 1810 percent he than fel You used Tesla us a representative company is estimate the best of capital for SMI What are some of the potential problems with this approach in this situation " What improve Of course a bubble can ments might you suggest Sample many investors Phone which increased in March 27 2013. 80 Red 3 A Economic Value Added and the Measurement the company be overallow all your alculations , as jump - tons and everything else into the report for the chief financial officer . all he wants to know is what the ROS project's internal rate of return ( IRR ) and net present value ( NPVT are . What will you report COST OF CAPITAL FOR SWAN MOTORS You have recently been hired by Swan Motors . Inc . ( SMD ) , in its relatively new treasury management department . SMI was founded & years ago by Joe Swan Joe found a method to manufacture a cheaper battery with much greater energy density than was previously possible . giving a car powered by the battery a range of 790 miles before requiring a charge . The cars manufactured by SMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers . The company is privately owned by Joe and his family . and it had sales of 597 million last year . SMI primarily sells to customers who buy the cars online . although it does have a limited number of company - owned dealerships . Most sales are online . The customer selects any cus - tomization and makes a deposit of 20 percent of the purchase price . After the order is taken , the car is made to order . typically within 45 days SMI's growth to date has come from its profits . When the company had sufficient capital . it would expand production Relatively little formal analysis has been used in its capital budgeting process . Joe has just read about capital budget ing techniques and has come to you for help . For starters . the company has never attempted to determine its cost of capital , and Joe would like you to perform the analysis Because the company is privately owned it is difficult to determine the cost of equity for the company . Joe wants you to use the pure play approach to estimate the cost of capital for SMI , and he has cho - sen Tesla Motors as a representative company . The following questions will lead you through the steps to calculate this estimate
