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The first part of this assignment asks you to estimate the weighted average cost of capital (WACC) for Regeneron Pharmaceuticals. As a starting point, use
The first part of this assignment asks you to estimate the weighted average cost of capital (WACC) for Regeneron Pharmaceuticals.
As a starting point, use the REGN.xlsx file I created which you will find it as attachment on Digiex).
Assume that Regenerons optimal debt ratio (D/V) is 40%, tax rate is 30% and its cost of debt is 6%.
1) Compute the annual Beta of Regeneron (use two decimals only). Use the annual log-return for your analysis. What is the interpretation of the Beta you just computed?
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