Estimate the cost of equity capital. Estimate the weighted-average cost of capital (WACC). create a table showing
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Estimate the cost of equity capital.
Estimate the weighted-average cost of capital (WACC). create a table showing the relevant variables.
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123 3 4 5 6 7 8 9 10 11 12 13 A B Facts and Assumptions Yield to maturity on long-term government bonds Yield to maturity on company long-term bonds Coupon rate on company long-term bonds Market price of risk, or risk premium Estimated company equity beta Stock price per share Number of shares outstanding (million) Book value of equity (million) Book value of interest-bearing debt (million) Tax rate 4.54% 6.32% 7.50% 6.30% 1.05 $25.97 681.2 $4,965 $6,674 35.0% 123 3 4 5 6 7 8 9 10 11 12 13 A B Facts and Assumptions Yield to maturity on long-term government bonds Yield to maturity on company long-term bonds Coupon rate on company long-term bonds Market price of risk, or risk premium Estimated company equity beta Stock price per share Number of shares outstanding (million) Book value of equity (million) Book value of interest-bearing debt (million) Tax rate 4.54% 6.32% 7.50% 6.30% 1.05 $25.97 681.2 $4,965 $6,674 35.0%
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