How to calculate cost of capital, wacc and compare it with whole industry?
wuhanqiThe memo can be no longer than one, single-spaced standard page. Within that limit, you should
include the following:
o For the cost of capital: an explanation of what numbers you used to calculate the
cost of capital
o For dividends: what dividends has the firm paid over the past 2 years? At the
time each dividend was paid, what was the dividend as a fraction of net income
and as a fraction of the stock price?
o Where did you obtain each of the numbers, for cost of capital, dividends, and
capital structure
o A discussion of the leverage, Beta, final cost of capital, and dividends. Is each of
these statistics similar to your expectations for the firm you chose (given the
firm’s industry, etc.)? If so, please explain why you would expect to find such
levels for this firm. If not, please explain why you expected something different
and why you find your results surprising
The important part is that i need to know WACC, the discussion f the leverage, Beta, final cost of capital, and dividends and whether it meets your expection.
- 8 years ago
- 50
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