calculated the cost of capital . Table 8.8: Cost of Equity, Debt and Capital, Disney Cost of

calculated the cost of capital .

Transcribed Image Text:

Table 8.8: Cost of Equity, Debt and Capital, Disney Cost of Debt (after- Debt Ratio Cost of Equity tax) Cost of Capital 0% 9.15% 2.73% 9.15% 10% 9.50% 2.82% 8.84% 20% 9.95% 3.14% 8.59% 30% 10.53% 3.45% 8.40% 40% 11.30% 5.02% 8.78% 50% 12.66% 8.20% 10.43% 60% 15.34% 12.84% 13.84% Table 8.8: Cost of Equity, Debt and Capital, Disney Cost of Debt (after- Debt Ratio Cost of Equity tax) Cost of Capital 0% 9.15% 2.73% 9.15% 10% 9.50% 2.82% 8.84% 20% 9.95% 3.14% 8.59% 30% 10.53% 3.45% 8.40% 40% 11.30% 5.02% 8.78% 50% 12.66% 8.20% 10.43% 60% 15.34% 12.84% 13.84%

Answer rating: 100% (QA)

To calculate the cost of capital we need to use the weighted average cost of capital WACC formula wh... View the full answer