calculate the WACC from the data below. The tax rate is 21%. risk free rate (10-year

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calculate the WACC from the data below. The tax rate is 21%.

risk free rate (10-year Treasury Yield)	4.99%
equity beta	0.52
expected market risk premium	4.00%	Based on the historical approach, we can simply assume the expected market risk premium is the same as the average of historical market risk premium, which is 4%.
cost of equity rE	7.0700%	Note that rE = risk free rate + equity beta * expected market risk premium, NOT risk free rate + equity beta * (expected market risk premium - risk free rate)

S&P's Rating	A+
debt beta	0.05
cost of debt rD	5.1900%	rD = risk free rate + debt beta * expected market risk premium

	2022
Cash and Short-Term Investments	$56,545	USD million
Debt in Current Liabilities	$92,567	USD million
Long-Term Debt - Total	$128,441	USD million
Net Debt	$164,463	USD million

Stock Price	$141.69	USD
Shares Outstanding	1,356,518	millions
Market Value of Equity	$192,205,035.42	USD million
Enterprise Value	$192,369,498	USD million

Related Book For answer-question

answer-question

Corporate Finance

Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 18, 2024 04:56 AM

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