estimate the cost of equity and WACC for Air New Zealand. You can assume that Beta...

 

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estimate the cost of equity and WACC for Air New Zealand. You can assume that Beta 5Y on the information sheet is the equity beta of Air New Zealand. Assume that the market risk premium is 4.72% and the risk free rate is 0.21% (as of April 30, 2021). Use 2% as the cost of debt for Air New Zealand. Assume that the marginal corporate tax rate is 28%. The debt to capital ratio (net debt / (net debt + market cap)) is example, if the net debt is 500 and total capital is 1000, fill in 0.50) The cost of equity is The WACC is (Provide your answer as x.xx. For %. (Provide your answer as x.xx. If the cost of equity is 5.05%, fill in 5.05) %. (Provide your answer as x.xx. If the WACC is 5.05%, fill in 5.05.) estimate the cost of equity and WACC for Air New Zealand. You can assume that Beta 5Y on the information sheet is the equity beta of Air New Zealand. Assume that the market risk premium is 4.72% and the risk free rate is 0.21% (as of April 30, 2021). Use 2% as the cost of debt for Air New Zealand. Assume that the marginal corporate tax rate is 28%. The debt to capital ratio (net debt / (net debt + market cap)) is example, if the net debt is 500 and total capital is 1000, fill in 0.50) The cost of equity is The WACC is (Provide your answer as x.xx. For %. (Provide your answer as x.xx. If the cost of equity is 5.05%, fill in 5.05) %. (Provide your answer as x.xx. If the WACC is 5.05%, fill in 5.05.)

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Estimating Air New Zealands Cost of Equity and WACC Given Inform... View the full answer