Hi, i'm trying to figure this out from the case Midland and i'm so confused. can you
Fantastic news! We've Found the answer you've been seeking!
Question:
Hi, i'm trying to figure this out from the case Midland and i'm so confused. can you help teach me?
How do you Calculate unlevered cost of capital (rA) for the Petrochemical division. How would you go about? Calculate the WACC for the Petrochemical division.
WACC Petrochemical
10-year yield to U.S. Treasury Bonds 4.66%
Overall Consolidated Spread to Treasury 1.35%
RD 6.01%
Tax Rate 39.00 %
EMRP 5 %
(Beta) 1.4
rf 4.66 %
re 11.66 %
D/E 117.8 %
D/V 0.540863
E/V 0.459137
WACC 0.073364
7.336394 %
Posted Date: