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Estimating Cost of Capital for Netflix company a. Compute the market value of all of the companys equity. b. Compute the market value of the

Estimating Cost of Capital for Netflix company

a. Compute the market value of all of the company’s equity.

b. Compute the market value of the company’s interest-bearing debt, using the interest expenses and weighted maturity of the debt, if need be. Compute the present value of lease and other contractual commitments that your company has contractually obligated itself to pay. Add the two values to estimate the market value of debt (which you will need to use for the levered beta computation in the earlier section)

c. Compute a debt to capital ratio, using the market values, and a cost of capital based on this ratio for both the company and its individual business units.

check the financial data from Yahoo finance or from the company site or annual report for year 2019

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a The market value of Netflixs equity can be computed using the companys current share price and the ... blur-text-image

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