Question
Yield for 10 year treasury bonds 15.2% they want it in % Number of shares Price 178.58 Market Capitalization 89447.1504 Market Risk Premium 10% Beta
Yield for 10 year treasury bonds 15.2% they want it in %
Number of shares Price 178.58
Market Capitalization 89447.1504
Market Risk Premium 10%
Beta 0.99
Cost of equity using CAPM 11.4200% E(Ri)= Rf + [E(RM)-Rf] *Bi
total market value of debt 18,039,091.32
Bond Yeild Maturing the closest to 10 years 1.986
10 year Bond Rate 2.35%
What is weight of debt______?
What is the weight of equity_____?
Weight cost of equity_____?
Weighted cost of debt_____?
WACC______?
Net debt _____?
Weight equity____?
WACC with net debt___?
how much does the WACC change if you use the net debt versus the first method of calulation?
How confident are you in your estimate? Which implicit assumptions did you make during your data collection efforts?
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