Question: solve in excel and show = equations used not just answers Find the cost of equity for Consolidated Wheels and Axles Inc. using the information
solve in excel and show = equations used not just answers
| Find the cost of equity for Consolidated Wheels and Axles Inc. using the information below: | |||||
| The firm's beta estimate is 0.9 | |||||
| The 10-year Treasury yield is 5.1% | |||||
| The (expected) market risk premium is 6.3% |
| ||||
| Compute the weighted average cost of capital using the information below: | ||||
| The effective marginal tax rate is 20% | ||||
| Weight | Cost (Rate) | |||
| short term debt, not recurring | 0.10 | 7.9% | ||
| short term debt, recurring | 0.15 | 7.5% | ||
| long term debt | 0.20 | 7.0% | ||
| preferred stock | 0.10 | 9.0% | ||
| common equity | 0.55 | 11.5% | ||
| short term investments | 0.05 | 4.7% | ||
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