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Please solve for the following missing values below. Please include all work, including the work used on a financial calculator as well as all equations
Please solve for the following missing values below. Please include all work, including the work used on a financial calculator as well as all equations used.
Market Cap | (in billions rounded to 3 decimals) | 252.541 |
Beta | (number rounded to 2 decimals) | 0.59 |
Risk-Free Rate of Return | (percentage rounded to 2 decimals) | 3.91 |
Expected Return on the Market | (percentage rounded to 2 decimals) | 9.8 |
Bond Quote | (percentage rounded to 2 decimals) | 97 |
Bond Coupon Rate | (percentage rounded to 2 decimals) | 3.9 |
Market Value of Debt | (in billions rounded to 3 decimals) | 39.159 |
Weight on Equity | (percentage rounded to 4 decimals) | 86.58 |
Weight on Debt | (percentage rounded to 4 decimals) | 13.42 |
Cost of Equity | (percentage rounded to 4 decimals) | ? |
Cost of Debt | (percentage rounded to 4 decimals) | ? |
WACC | (percentage rounded to 4 decimals) | ? |
Total face value of outstanding bonds is $40.3700 billion. | ||
Bonds mature in 10 years. | ||
Bond interest is paid semiannually. | ||
Individual bonds have a face value of $1,000. | ||
Corporate tax rate is 21% |
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