Question
The beta for Caterpillar is 1.58 and the beta for Colgate is 0.43. The annual return for the SP 500 is 10.5% and the risk
The beta for Caterpillar is 1.58 and the beta for Colgate is 0.43. The annual return for the SP 500 is 10.5% and the risk free rate is 0.28%.For Caterpillar, we have the following data: Yield to maturity of the bonds issued by the company: 2.4% beta : 1.58 Tax rate : 35% Long Term Debt : 16,243 million Dollars Number of shares outstanding : 583.4 million shares Price per share : 80 Dollars per share
Please help me with calculating the stock return and calculating the WACC in percent for caterpillar.
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
