Question: Complete the problems in Excel and submit them / show formulas please Riskfree rate 0.02 Market rate 0.15 Tax rate 0.30 1. Use the information
Complete the problems in Excel and submit them / show formulas please
Riskfree rate 0.02 Market rate 0.15 Tax rate 0.30
1. Use the information below and the ratings chart in the slides to find this firms WACC.
| Debt | Equity | ||
| Debt | $7,000 | Market value | $10,000 |
| i (30 yr. BBB rating) | 0.053 | Beta | 0.90 |
| M7 Ind. Ass. Answer Key | ||
| Inputs | ||
| Market valuedebt | ||
| Market valueequity | ||
| Bond YTM | ||
| Beta | ||
| Tax rate | ||
| Riskfree rate | ||
| Market rate | ||
| Outputs | ||
| Total market value | ||
| % debt | ||
| % equity | ||
| After-tax kd | ||
| kc | ||
| WACC | ||
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