calculate the cost of debt and WACC with the formula from the data given below in table.
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calculate the cost of debt and WACC with the formula from the data given below in table.
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Equity beta Tax rate, Tc Risk-free rate, rf E(rm) Using Historical P/E GOOG WACC Capital structure weight in equity Capital structure weight in debt Computation of WACC Cost of debt, rp Cost of equity, re WACC 1.5000 13.76% <-- =Q58 4.79% 8.14% <-- =Q51 -1.68% <-- =Q42 101.68% <-- =Q43 9.81% <-- =Q63+Q61*(Q64-Q63) Equity beta Tax rate, Tc Risk-free rate, rf E(rm) Using Historical P/E GOOG WACC Capital structure weight in equity Capital structure weight in debt Computation of WACC Cost of debt, rp Cost of equity, re WACC 1.5000 13.76% <-- =Q58 4.79% 8.14% <-- =Q51 -1.68% <-- =Q42 101.68% <-- =Q43 9.81% <-- =Q63+Q61*(Q64-Q63)
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To calculate the cost of debt and the Weighted Average Cost of Capital WACC well use the formulas pr... View the full answer
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date:
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