Question: NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE Calculate WACC: Debt Weight: 60.00% Equity Weight: 40.00% Tax rate: 35.00% WACC: Use CAPM Cost of Equity The
NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE
| Calculate WACC: | ||
| Debt Weight: | 60.00% | |
| Equity Weight: | 40.00% | |
| Tax rate: | 35.00% |
| WACC: Use CAPM Cost of Equity | ||
The below information is given. I need to solve for WACC.
| Cost of Equity: | ||
| Stock quote link | ||
| Stock price: | $ 65.95 | |
| Dividend: | $ 1.66 | |
| Key statistics link | ||
| Beta: | 1.43 | |
| Shares outstanding: | 148,610,000 | |
| Analysts' estimates link | ||
| 5-year dividend growth: | 6.85% | |
| Bond center link: | ||
| Risk-free rate: | 0.13% | |
| Market Risk Premium: | 7.00% | |
| Cost of Equity: | Use DDM: r = D/P + g | |
| Cost of Equity: | Use CAPM: r = rf + B * (Rm - Rf) | |
| 2. Find Cost of Debt: | ||
| Suppose the average bond information is below for an annual coupon paying bond: | ||
| Maturity | 5 | |
| Coupon | 4.00% | |
| FV | $5,000.00 | |
| P | $4,500.00 | |
| YTM | 6.40% | |
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