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These questions are about P uma company 4. Estimating Cost of Capital (3 marks) a. Compute the market value of all of the company's equity.
These questions are about Puma company
4. Estimating Cost of Capital (3 marks) a. Compute the market value of all of the company's equity. b. Compute the market value of the company's interest- bearing debt, using the interest expenses and weighted maturity of the debt, if need be. Compute the present value of lease and other contractual commitments that your company has contractually obligated itself to pay. Add the two values to estimate the market value of debt (which you will need to use for the levered beta computation in the earlier section) c. Compute a debt to capital ratio, using the market values, and a cost of capital based on this ratio for both the company and its individual business units. Proper referencing in text and bibliography (1 mark) Overall neatness of the report (1 mark) Executive Summary (1 mark) Oral presentation for Phase I and II (2 marks) Good Luck 4. Estimating Cost of Capital (3 marks) a. Compute the market value of all of the company's equity. b. Compute the market value of the company's interest- bearing debt, using the interest expenses and weighted maturity of the debt, if need be. Compute the present value of lease and other contractual commitments that your company has contractually obligated itself to pay. Add the two values to estimate the market value of debt (which you will need to use for the levered beta computation in the earlier section) c. Compute a debt to capital ratio, using the market values, and a cost of capital based on this ratio for both the company and its individual business units. Proper referencing in text and bibliography (1 mark) Overall neatness of the report (1 mark) Executive Summary (1 mark) Oral presentation for Phase I and II (2 marks) Good LuckStep by Step Solution
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