You need to figure out the value of Royal. Calculate the rat What is Royal's after-tax...
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You need to figure out the value of Royal. Calculate the rat What is Royal's after-tax cost of debt? Royal PLC issued a 10-year I rate of 4.5% and is currently trading at a price of 107. Royal has a curr outstanding, and its beta is 0.6. The market risk premium is 5.8%. Roy credit. Provide justification for your choices. If using a financial Balance Sheet 2014 2015 Current assets Current liabil Inventories 22 20 Trade and other receivables 926 949 Cash and current financial asse 369 348 1,317 1,317 Non-current Non-current assets Property, plant and equipment 1,989 1,933 Goodwill and intangible assets 392 482 Retirement benefit asset 1,723 3,179 Other non-current assets 55 80 4,159 5,674 Total equity Total assets 5,476 6,991 One Month Interbank Lending Rate and Governme 1 month 5 month 10 year bo 0.51 1.46 2.03 You need to figure out the value of Royal. Calculate the rat What is Royal's after-tax cost of debt? Royal PLC issued a 10-year I rate of 4.5% and is currently trading at a price of 107. Royal has a curr outstanding, and its beta is 0.6. The market risk premium is 5.8%. Roy credit. Provide justification for your choices. If using a financial Balance Sheet 2014 2015 Current assets Current liabil Inventories 22 20 Trade and other receivables 926 949 Cash and current financial asse 369 348 1,317 1,317 Non-current Non-current assets Property, plant and equipment 1,989 1,933 Goodwill and intangible assets 392 482 Retirement benefit asset 1,723 3,179 Other non-current assets 55 80 4,159 5,674 Total equity Total assets 5,476 6,991 One Month Interbank Lending Rate and Governme 1 month 5 month 10 year bo 0.51 1.46 2.03
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Answer rating: 100% (QA)
Royals AfterTax Cost of Debt and WACC Estimation We cant definitively determine Royals value or weighted average cost of capital WACC with the provide... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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