WebThe weighted average cost of capital is 12.0%. What is the horizon (or continuing) value (in millions) at t = 5? HV5 = [FCF5 x (1+ gL)]/ (WACC – gL)(1) We have: FCF5 = $85.00 gL = 6.5% WACC = 12.0% FCF5 x (1 + g) =85 x (1+0.065)= $90.5250 Plug all information into the above equation (equation 1) HV5 = $90.5250/ (0.12 - 0.065) =$1,646 © © Solutions WebWACC 40% Debt; 60% Equity; rd = 9%; T = 40%; WACC = 9.96%; rs = ? WACC = (wd) (rd) (1 - T) + (ws) (rs) 9.96% = (0.4) (9%) (1 - 0.4) + (0.6)rs 9.96% = 2.16% + 0.6rs 7.8% = 0.6rs rs = 13%. 11-9 A company’s 6% coupon rate, …
Weighted Average Cost of Capital (WACC) Calculator
WebJun 15, 2024 · The formula for WACC is (Rd*Wd) + (Rs*We ), and plugging in our calculated costs and weights gives us: Cost of equity (Rs) = 8.60% Cost of debt (Rd) = 2.36% Weight of debt (Wd) = 4% Weight of equity (We) = 96% Now, plugging in the above numbers, we get: WACC = (2.36% x 4%) + (8.60% x 96%) = 8.26% cvs technician immunizer
WACC Formula, Definition and Uses - Guide to Cost of …
WebMar 6, 2024 · Increase in risk free rate. Answer: This would result in an increase in the cost of debt (rd (1t)), cost of equity (rs) and WACC (Weighted Average Cost of Capital). This is … Jun 25, 2008 · WebUniversal Exports Inc. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio rd rs WACC 30% 70% 7.00% 10.50% 8.61% 40% 60% 7.20% 10.80% 8.21% 50% 50% 7.70% 11.40% 8.01% This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. cvs technical support representative