Question
Use the 10 year Treasury Bond rate as the risk free rate and assume that the market risk premium is 8% to find Amazons cost
Use the 10 year Treasury Bond rate as the risk free rate and assume that the market risk premium is 8% to find Amazons cost of equity. Assume that Amazons bonds are rated AAA and that Amazons corporate tax rate is 25%. Find Amazons weighted average cost of capital. Assume that the project will be financed with internal funds. You will need to find additional financial information from the Wall Street Journal and online at sites like http://finance.yahoo.com to complete your calculation.
Here is what I have so far from the frst part of this problem. I still need to calculate OCF prior to doing this, but I am not sure how...
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started