Question: Any help whatsoever would be GREATLY appreciated! Question: Weighted Average Cost of Capital (WACC): Find the most recent capital structure. With your best effort, calculate
Any help whatsoever would be GREATLY appreciated!
Question:
"Weighted Average Cost of Capital (WACC): Find the most recent capital structure. With your best effort, calculate the WACC. Use the YTM found in the bond rating section for cost of debt. Do not forget to account for taxes. It is suggested that you use a 35% tax bracket. Use your CAPM for the cost of stock. You can use Morningstar for the weight of the capital structure."
The company is Yum! Brands (ticker symbol: YUM). Information on YUM can be found here: http://quicktake.morningstar.com/StockNet/bonds.aspx?Symbol=YUM&Country=USA
Yum's most recent capital structure is
Debt: 126% / $9.2 Billion
Preferred: --- / --- (does not list anything)
Equity: -26.1% / $-1.9 Billion
For the YTM, I think I use the given percentage that is farthest out, which is in 2043 at 6.90%.
Anyway, I'm looking for the WACC. Any help would be awesome! Thanks!
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