1. Business
  2. Finance
  3. need excel solution excel formula only please calculate wacc debt...

Question: need excel solution excel formula only please calculate wacc debt...

Question details

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%
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution