Question: Complete the table below and calculate the WACC for the Comparable Firms given in Exhibit 9, utilize the Corporate Bond rates given in Exhibit 8.

Complete the table below and calculate the WACC for the Comparable

Complete the table below and calculate the WACC for the Comparable Firms given in Exhibit 9, utilize the Corporate Bond rates given in Exhibit 8. Reflect on the WACC of Royal Mail in relation to the comparison data. What can you conclude? Tax Rate Risk-Free Rate Market Risk Premium National Grid Severn Trent Tesco United Utilities Vodafone Debt / Value Credit Rating Cost of Debt Beta Cost of Equity WACC

Company Industry National Grid Electricity and gas utility Water utility Severn Trent Tesco Food retailer Water utility United Utilities Vodafone Telecommunications National Grid Severn Trent Tesco United Utilities Vodafone Price per share (pence) Dividend per share (pence) Shares outstanding (millions) 200 900 855 2,190 230 42 80 15 36 16 3,730 239 8,096 682 26,440 Market capitalization (millions) 31,892 5,234 16,192 6,138 60,812 14,715 2,216 Book equity (millions) Book debt (millions) 11,911 1,078 70,802 25,362 25,950 4,622 11,213 6,042 0.67 Beta 0.60 0.79 0.87 0.86 Credit rating BB+ B+ BBB- BB+ B+ Company Industry National Grid Electricity and gas utility Water utility Severn Trent Tesco Food retailer Water utility United Utilities Vodafone Telecommunications National Grid Severn Trent Tesco United Utilities Vodafone Price per share (pence) Dividend per share (pence) Shares outstanding (millions) 200 900 855 2,190 230 42 80 15 36 16 3,730 239 8,096 682 26,440 Market capitalization (millions) 31,892 5,234 16,192 6,138 60,812 14,715 2,216 Book equity (millions) Book debt (millions) 11,911 1,078 70,802 25,362 25,950 4,622 11,213 6,042 0.67 Beta 0.60 0.79 0.87 0.86 Credit rating BB+ B+ BBB- BB+ B+

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Complete diagram of a replication fork in bacterial DNA Drag the appropriate labels to their respective targets. Label the components first (blue) and then the strands (pink). helcase 998 protein...

4) Calculate the WACC for the comparable companies given. Why might the information from comparables be useful in informing your opinion for a WACC for Heinz? Why not? Exhibit 4 H. J. HEINZ:...

can someone pls help me with this ?? Case 13: Royal Mail 1. What is going on with Hillary Hunt and Royal Mail Highlight the relevant background information and the key issues facing Royal Mail. 2...

Question I would like you to make an effort to calculate the WACC for Marriott overall which requires following a couple of steps: First, we need to unlever Marriott's Equity Beta with the actual...

Exhibit1 Financial History of Marriott Corporation (dollars in millions, except per share amounts) 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 Summary of Operations Sales 1,174 1,426.0 1,633.9...

TeleTech Corporation, 2005 1. How does the choice of constant vs. risk-adjusted hurdle rates affect the evaluation of Tele-Techs two segments? What are the implications for Tele-Techs resource...

Hello This is related to Course BUS5440. I need help with the following project:- OCS Project 1) These are the instructions given in my class to do this project:- The OCS project requires you to...

Marriott Corporation: The Cost of Capital (Abridged) In April 1988, Dan Cohrs, vice president of project finance at the Marriott Corporation, was preparing his annual recommendations for the hurdle...

Corporate Finance Marriott Corporation: The Cost of Capital Questions 1. Estimate the weighted average cost of capital ( WACC ) for Marriott Corporation (at its target capital structure)? Justify...

GUARANTEED LIKE this should be better !!! also try zooming in Question 4 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB if it moves forward...

For Both Write-up, and Presentation: Deadline: Before Submit your write-up and Power Points Slides through . Case Write-ups are worth 15 points and presentations a Please read through the case...

Fish blood has an osmotic pressure equal to that of seawater. If seawater freezes at 2.3C, what is the osmotic pressure of the blood at 25C? To solve this problem, what assumptions must be made?

Dumps of Solid Waste can be seen piled up in major cities of Pakistan including Karachi. Explain what are the reasons that after spending so many resources we still could not overcome that problem?

Corporations can elect to deduct up to $ 5 , 0 0 0 of organizational costs in the year they begin business, assuming their total organizational expenses do not exceed $ 5 0 , 0 0 0 . True False

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...