Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The weighted average cost of capital (WACC): Download the Excel file RIVN LEVERED BETA Calculation sheet.xlsx . It contains data on prices of Rivian (RIVN)

The weighted average cost of capital (WACC): Download the Excel file RIVN LEVERED BETA Calculation sheet.xlsx . It contains data on prices of Rivian (RIVN) and the S&P 500 Index for the past two years. \ \ Using the whole data provided therein, and the sample formulae in EXCEL, compute the unlevered beta for RIVN. The value line beta for RIVN is 2.13. Do your computations result in a value which is greater than, or equal to, or less than valueline beta for the stock? \ \ Using the financial data given below, compute the asset beta for RIVN \ \ Cash and ST Investments = $9.13 bn out of which $7.94 bn is cash only. Total Current Assets is $12.09 bn. The total assets are $16.46 bn. The owners equity is $10.55 bn, Long term debt is $3.04 bn, the remainder being current liabilities. \ \ The risk free rate is 4.81% and the Expected return on the S&P 500 is 7.4376% \ \ What is the WACC for RIVN investors?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Gender And Finance

Authors: Ylva Baeckström

1st Edition

103205557X, 978-1032055572

More Books

Students also viewed these Finance questions

Question

How do you think we should handle group confl ict?

Answered: 1 week ago