Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The following information (extracted from Yahoo! finance for Biogen Inc.). Assuming that the market risk premium is 9.5 % and the pre-tax cost of debt

image text in transcribed
The following information (extracted from Yahoo! finance for Biogen Inc.). Assuming that the market risk premium is 9.5 % and the pre-tax cost of debt is 5.1 % calculate Biogen Inc's WACC. (write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234) WACC Weights (capital structure) Information Date: 07/20/2020 Shares outstanding 166.090 (millions) Stock Price $_283.4 Equity Debt $ $5.954,8 (millions) _(millions) Cost Components Equity Beta 0.51 U.S. Treasury yield (10-year) 1.5% Tax-rate? %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions