Doing a financial project on Zoom Video Communications Inc (ZM). I have access to yahoo financial -
Question:
Doing a financial project on Zoom Video Communications Inc (ZM). I have access to yahoo financial
- Estimate the firms before-tax and after-tax component cost of debt; (Note: If the information about the current corporate tax rate is not available, you need to estimate the tax rate based on the historical tax payments).
- Estimate the firms component cost of preferred stock if the firm has issued preferred stocks. (I found that they did not have any preferred stock)
- Use three approaches (CAPM, DCF, bond-yield-plus-risk-premium) to estimate the component cost of common equity for the firm.
- Calculate the firms weighted average cost of capital (WACC) using the market-based capital structure weights.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg