You want to calculate the WACC for auto parts retailer AutoZone (AZO). Complete the following steps to

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You want to calculate the WACC for auto parts retailer AutoZone (AZO). Complete the following steps to construct a spreadsheet that can be updated.

a. Using an input for the ticker symbol, create hyperlinks to the web pages that you will need to find all of the information necessary to calculate the cost of equity. Use a market risk premium of 7 percent when using CAPM.

b. Create hyperlinks to go to the FINRA bond quote website and the SEC EDGAR database and find the information for the company’s bonds. Create a table that calculates the cost of debt for the company. Assume the tax rate is 35 percent.

c. Finally, calculate the market value weights for debt and equity. What is the WACC for AutoZone?

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Related Book For  book-img-for-question

Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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