Question
Using Caterpillar 10-k december 2019 financial statements (,https://www.caterpillar.com/en/investors/financial-information/proxy-materials/annual-report-to-shareholders.html) determine the discount rate and calculate WACC. In order to do that, you need to calculate: A.
Using Caterpillar 10-k december 2019 financial statements (,https://www.caterpillar.com/en/investors/financial-information/proxy-materials/annual-report-to-shareholders.html)
determine the discount rate and calculate WACC.
In order to do that, you need to calculate:
A. Cost of debt
B. Cost of equity: Think CAPM (Capital Asset Pricing Model) or SLM (Security Market Line).
C. Can Caterpillar use preferred stock financing? (Analyze financial statements and answer yes or no; explain how you arrived at your answer
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
