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The beta for disney's stock in May 2009 was 0.9011. The T bond rate at that time was 3.5%. using an estimated equity risk premium
The beta for disney's stock in May 2009 was 0.9011. The T bond rate at that time was 3.5%. using an estimated equity risk premium of 6%. The estimated pretax cost of debt for Disney is 6%. Using a marginal tax rate of 38% and considering that the market value of equity is $45,193 and the market value of debt is $16,682, calculate the WACC.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
