Question
This homework is to estimate the WACC of General Motors Corporation (GM) at the end of December, 2020. Collect the following data: Beta (use the
This homework is to estimate the WACC of General Motors Corporation (GM) at the end of December, 2020. Collect the following data:
- Beta (use the current beta available at Marketwatch.com)
- Stock price and number of basic shares outstanding at the end of December 2020
- Interest-bearing debt from the 2020 balance sheet
- Taxes and taxable income from the 2020 income statement
- 10-year Treasury rate at the end of December 2020
Find the company's income statement and balance sheet from S&P NetAdvantage and then pick the cost of debt from
https://ycharts.com/indicators/moodys_seasoned_baa_corporate_bond_yield
Using these data, calculate the weighted average cost of capital of the company. For the cost of equity, use a 6% market risk premium.
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Get StartedRecommended Textbook for
Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
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