how do I calculate WACC with the following formula? rWACC = (E/E+D) rE + D/(E+D) rD...

how do I calculate WACC with the following formula?

rWACC = (E/E+D) rE + D/(E+D) rD (1-TC)

Assume the Market Risk Premium is 5%, The risk free rate is normally the yield on US Treasury securities such as a 10-year treasury. For this assignment, please use 3.5%. You may assume a corporate tax rate of 40%.

Equity is 59.75Billion

Debt is 30.28Billion

Beta is .68

Please show me how to do the calculations and which numbers go where in the formula to achieve the answer.

Expert Solution

cost of debt is not given. so we assume = risk free rate = 3.5%

jeff jeffy answered 11 months ago

Consider two stocks, D and E, with expected returns and volatilities given by E[rD]=15%, sD=20%, E[rE]=20%,...

Consider two stocks, D and E, with expected returns and volatilities given by E[rD]=15%, sD=20%, E[rE]=20%, sE=40%. The riskless rate is 2%. Consider now two portfolios P and Q with the following expected returns and standard deviations: E[rP]=16.2%, sP=18.77% and E[rQ]=16%, sQ=19.23%. These portfolios are formed by investing in stocks D and E and the riskless asset. It is known that one of these portfolios is a tangency portfolio for the efficient frontier constructed by investing in stocks D and...

Is there a formula to quickly calculate amortized interest? I know how to do it for...

Is there a formula to quickly calculate amortized interest? I know how to do it for each individual payment period (interest= [principle amount]x[interest rate]) and subtracting the amount of the payment that goes towards the principle, and doing it over and over again. However, this process takes too long once you get more payment periods. I am trying to answer the following question: Q: You have paid for 20 years of your 30 year mortgage and make monthly payments of...

Stock: Terreno Realty Corporation (TRNO) Rd=2.40% (cost of debt) Re=4.41% (cost of equity) WACC=3.94% This is...

Stock: Terreno Realty Corporation (TRNO) Rd=2.40% (cost of debt) Re=4.41% (cost of equity) WACC=3.94% This is the full question, I only need part 3 two-stage FCFE: Using the cost of equity, cost of debt, and WACC you computed in PHASE I, compute absolute valuation measures for the value of your stock. You must complete all four valuation measures. You may adjust your estimates of re, rd, and WACC if you find that a different estimate makes sense. However, you must...

how do I calculate the standard deviation of the stock returns by hand using this formula?...

how do I calculate the standard deviation of the stock returns by hand using this formula? Please show equations Returns KR -0.028046707 -0.00137424 -0.073959399 0.023774212 0.000725709 0.093908593 0.040437549 -0.036635855 -0.013787899 -0.001010467 -0.016520524 0.013027037 -0.07275805 0.006569397 0.002900627 0.027838008 0.035174196 -0.044512422 -0.001778114 -0.008550123 0.060007208 -0.028523993 -0.017531506 -0.126695243 -0.004495254 -0.000821074 0.010682065 -0.028455365 0.074058593 0.004285193 -0.030256065 0.029600028 0.003496525 -0.062330684 -0.015213977 -0.03836428 0.049101291 0.013790208 -0.083264582 -0.023830978 0.001842499 0.00643668 -0.009136514 -0.009681867 0.035381773 0.048561093 -0.028301859 0.034986635 0.016745341 0.043074367 0.061943277

Java: How do I compare two lists for example: List<A> listOne {a,b,c,d,e} List<A> listTwo {a,d,e} 1....

Java: How do I compare two lists for example: List<A> listOne {a,b,c,d,e} List<A> listTwo {a,d,e} 1. I am supposed to make sure that whatever that is in listTwo is in listOne even though there's more in listOne and there are repetitives in listTwo e.g {a,a,d,e} but it would still turn out true. But if listTwo is {a,b,d,f} it would return false. 2. Also, how can I make sure that in listTwo, there can be repetitives of any elements in listOne...

What is cost of capital? How do you calculate WACC?

how do i calculate the ETF Value(in $). HOW DO I CALCULATE WHAT FOR THIS ANSWER?...

how do i calculate the ETF Value(in $). HOW DO I CALCULATE WHAT FOR THIS ANSWER? Day Value of Index Index Daily Change ETF Expected % Change ETF Value (in $) 1 100 100 2 110 10.0 20 120.00 3 100 -9.1 -18.2 98.16 4 90 -10.1 -20.2 78.33

calculate Disney’s WACC. List the necessary input information to the WACC formula so your calculation is...

calculate Disney’s WACC. List the necessary input information to the WACC formula so your calculation is reproducible. Is your calculated WACC value reasonable for Disney? You will have to know how to calculate the WACC formula, the information you need is Disney’s latest annual balance sheet Information on equity, Information on debt, Beta, Risk-free rate and market premium Corporate tax rate The above info can be fount on https://www.morningstar.com/

I don't know to do ii) for letter a, as well as letter d, e and...

I don't know to do ii) for letter a, as well as letter d, e and the EC . Can you help? The combustion of carbon monoxide is represented by the equation below: CO(g) + ½O 2 (g) → CO 2 (g) (a) (i) Determine the value of the standard enthalpy change, ΔH o rxn, for the combustion of CO(g) at 298 K using the following information. (3 pts) C(s) + ½O 2 (g) → CO(g) ΔH o 298 =...

How do we calculate goodwill under U.S. GAAP? It is the reported RE on the subsidiary's...

How do we calculate goodwill under U.S. GAAP? It is the reported RE on the subsidiary's balance sheet. It is the sum of all assets and shares of stock used to purchase the subsidiary. It is the difference between the amount paid and the net assets of the subsidiary. None of these are the correct way to calculate the value of goodwill under U.S. GAAP. When can companies capitalize most of their R&D (research and development) costs? When the company...

Question