Question
What is the WACC (weighted average cost of capital) for Airbnb Inc. in 2022. Show your working out. Hints : Get the equity beta for
What is the WACC (weighted average cost of capital) for Airbnb Inc. in 2022.
Show your working out.
Hints:
Get the equity beta for the firm from Yahoo Finance: Yahoo Finance stock market live, quotes, business & finance news; Risk free rate is assumed to be 2% and market risk premium is assumed to be 5%.
Work out the cost of debt of the firm by checking its interest payment and long-term debt.
The information is generally available from the firms 10K annual reports.
Use the book value of long-term debt (or total liability) and market value of equity to work out the proportion of debt and equity in your WACC formula. Use only debt and equity in the WACC calculation.
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Forensic Accounting In Detecting Financial Frauds
Authors: Motilal Balram Bhavnani
1st Edition
979-8889950707
