What is the weighted-average cost of capital (WACC) based on Company XYZ's current capitalization and comps values?

9.00%

8.30%

7.90%

9.50%

Corporate Finance Institute. All rights reserved. Model Inputs and Assumptions All Figures in US$000's unless otherwise stated. Model Inputs and Assumptions General Assumptions Transaction Date Fiscal Year-End Days Per Year 01/01/2020 31/12/2020 365 Current Capitalization Cash-on-Hand PP&E Total Debt Total Equity $10,000 $30,000 $20,000 $60,000 Valuation Assumptions Tax Rate Perpetual Growth Rate EBITDA Exit Multiple 30% 2% 10.0x Risk-Free Rate Equity Risk Premium Interest Rate 5% 4% 6% Corporate Finance Institute. All rights reserved. Comparable Company Analysis All Figures in US$000's unless otherwise stated. Comparable Trading Metrics Company Name EV/Sales [x] Valuation (2020E) EV/EBITDA EV/EBIT [x] [x] P/E [x] Company A Company B Company C Company D Company E Average Median Price [$/sh.] $38 $81 $52 $70 $21 Market Data Market Cap [$] $168,041 $123,883 $10,326 $11,618 $964 EV [$] $185,122 $143,824 $12,764 $11,004 $968 Sales [$] $46,854 $56,415 $3,997 $2,246 $345 Financial Data (202E) EBITDA EBIT [$] [$] $14,104 $11,127 $12,344 $9,878 $1,319 $1,103 $706 $88 $66 Earnings [$] $7,381 $5,618 $620 $357 $41 $584