Question
The WACC of 9.7%. (15 points) - Determine all of the WACC inputs used to get to Snap's stated WACC. This includes breaking down the
The WACC of 9.7%. (15 points)
- Determine all of the WACC inputs used to get to Snap's stated WACC. This includes breaking down the cost of equity into its separate components as well.
- Show the WACC formula with these input numbers.
- Calculate what beta Novak used to estimate the cost of equity? Do you think this beta is reasonable? Discuss why or why not.
- How does this WACC compare to the WACCs Nowak has used to value other internet and social media companies? (Show a table as well as discuss)
- Are these the best list of comparable firms to consider? Discuss.
- How does this WACC compare to the WACC's that other analysts have used to value Snap? (Show a table as well as discuss)
- In your opinion, is 9.7% reasonable? Discuss why.
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
