For Online Class Help or Private Tutoring Service email us at [email protected] or WhatsApp us at +1 (781) 656-7669

Homework Provider

 
  • Take My Class
  • Take My Exam
  • How It Works
  • Solutions
    • Questions
  • Testimonials
  • Blog
  • Who Are We
  • Contact Us
  • Take My Class
  • Take My Exam
  • How It Works
  • Solutions
    • Questions
  • Testimonials
  • Blog
  • Who Are We
  • Contact Us
  1. Home
  2. Questions
  3. Trident FIN 501 Module 3 SLP

Trident FIN 501 Module 3 SLP

CAPITAL BUDGETING AND THE COST OF CAPITAL

For your Module 3 SLP assignment, continue to do research on the company that you wrote about for Modules 1 and 2. For this assignment, you will be estimating the weighted average cost of capital (WACC) for your chosen company. The final calculation will be fairly straightforward, as it involves just plugging in some numbers into an equation. However, the more challenging task will be finding the necessary numbers to plug into the formulas. You will need information such as the beta for your company, the bond-rating, and various information from its balance sheet. Links to some suggested Web pages for finding this kind of information is included in the instructions, but you might
be able to find other sources of information. Go step by step and present your information for Steps 1-4 below in a Word document. Make sure to show all of your steps one by one and include the sources of your information:

take-my-online-class-thumbnail
Play Video
pay-someone-to-take-my-online-class

Name: Jennifer Lucas
Status: Online ⬤
Classes Taken: 3878
Ratings: ⭐⭐⭐⭐⭐

Hire Me

STATUS

  1. Find out your chosen company’s credit rating. Rating agencies such as Moody’s and Standard and Poor’s assign ratings to companies. AAA is high, AA is lower, BBB is even lower, etc. The higher the rating, the lower the cost of debt capital. Explain what your company’s credit rating is and the reasons for the high or low rating based on your research. Also, use the Fidelity Fixed Income Web page to find out what the current return is for a 30-year bond for a corporation with the rating that your company has. This yield will be the approximate cost of debt capital for your company. We will call the cost of debt RD.
  2. Now estimate the cost of equity for your company. First, you will need the beta; you already found this for your Module 1 SLP. You will also need the three-month treasury bill yield, which we will use as our measure of the risk-free rate. This rate should be listed on the Fidelity Fixed Income Web page linked above. Finally, you will need the equity risk premium. You can find estimates of this on many Web pages including Fidelity Fixed Income or Gutenberg Research. It is usually around 5%. Once you have this information, you can estimate the cost of equity as the 30-year treasury bill yield rate plus beta multiplied by the equity premium:
  3. Cost of Equity = risk-free rate + Beta * (Equity Premium).
  4. Show your calculations. We will call the cost of equity RE.
  5. Now find out how much of the firm’s capital is equity and how much is debt. For the total value, look at the balance sheet for your company as found on Google Finance or a similar Web page. The total value of your company will be “total liabilities and shareholder’s equity.” The proportion of debt will be total liabilities divided by total value, which we will call D/V. The proportion of equity will be shareholder’s equity divided by total value, or E/V. If you calculate them correctly, the proportions will add up to one.
  6. Now we have all the information we need to get at least a rough ballpark estimate of WACC. Let’s assume a corporate tax rate of 35%. So the formula we will use is WACC = (E/V)* RE +(D/V)* RD *(1-.35)
  7. Calculate WACC and show your computations. As a “reality check” on your calculations, the WACC should likely be in the single digits and positive. Compare what you found to the average WACC in your company’s industry, which should be available on Web pages such as Cost of Capital by Sector (US). Note that 35% is the official corporate tax rate, but many corporations find tax breaks. If your WACC is too low, try computing it with a lower tax rate such as 25% or 10%.
Facebook
Twitter
Reddit
Pinterest
WhatsApp
Email
pdf-answers
Get Solved Answers
$2.99
Add to cart

GET QUICK PRICE ESTIMATE FOR THIS TASK

WHY CHOOSE US

  • Over 300 Experts to Work on Your Papers
  • 100% Privacy and Confidentiality
  • Amazing Discounts and Special Offers
  • Delivery within Every Deadline Level
  • Secure Payment Process
  • High-Quality Papers
  • 24/7 Live Customer Support
  • Free Revisions If Required
  • Fair & Cheap Prices
  • Rated 4.9/5 By Students

COMPLETED TASKS

SOCS 325 Week 8 Final Exam (Version 2)

July 13, 2020

SOCS 325 Week 8 Final Exam (Version 1)

July 13, 2020

SOCS 325 Week 8 Final Exam (Collection)

July 13, 2020

SOCS 325 Week 8 Collaborative Group Project Discussion

July 13, 2020

SOCS 325 Week 7 Bundle: Assignments + Group Project + Discussions

July 13, 2020

SOCS 325 Week 6 Bundle: Assignments + Discussions

July 13, 2020

SOCS 325 Week 5 Bundle: Assignments + Discussions

July 13, 2020

SOCS 325 Week 4 Midterm (Version 4)

July 13, 2020

Homework Provider

Facebook-f Twitter Pinterest Whatsapp Reddit Envelope

WE ACCEPT

PayPal
VISA Light
AMERICAN EXPRESS LIGHT
Bitcoin
  • Take My Online Class
  • Do My Case Study
  • Take My Online Exam
  • Online Class Help
  • Do My Homework
  • Take My Online Test
  • Original Homework Help
  • Premium Plagiarism Checker
  • Take My Midterm Exam
  • Research Paper Writing
  • Case Study Writing Help
  • Dissertation Writing Service
  • Online Coursework Help
  • Pay Someone To Write My Paper
  • Pay For Online Classes
  • Programming Classes Help
  • MyMathLab Answers
  • MyStatLab Answers
  • MyAccountingLab Answers
  • Need Help With Online Class
  • Cheap Assignment Help
  • Write My Online Essay
  • Online Student Problems
  • Math Homework Help

Contact Us

  • [email protected]
  • WhatsApp (781) 656-7669
  • twitter.com/hwp_helper
  • fb.com/homeworkprovidercom
  • Privacy Policy
  • Terms of Use
  • DMCA
  • Cookie Policy
  • Money Back Guarantee
  • Premium Plagiarism Checker
  • Contact Us

HomeworkProvider.com is not endorsed or affiliated by any university or college. The services provided are meant to assist the client by providing a guideline and the product provided is intended to be used for research or study purposes.

© 2013-2020 HomeworkProvider. All rights reserved.

ORDER THIS
WHATSAPP

Yay! You are just one step away to get rid of homework stress

  • How It Works
  • Testimonials
  • We are committed to ensuring that your information is secure with us
hire-an-expert-to-do-my-exam

Don't Waste Your Time Searching For Old Plagiarized Courses

Get Your Job Done By Our Anonymous Quality Experts

  • How It Works
  • Reviews
  • 24/7 Support
doc icon homework provider

CIS 155 Lab Help, Leslie​
Thank you for doing my CIS 115 lab. Homework Provider is the best.

Rated By Client
 5/5
doc icon homework provider

Dream Service, William
Thanks God, you came to my rescue. Thanks for your help.

Rated By Client
 5/5
doc icon homework provider

Mind blowing service, Eddie
I could have failed quite a few exams if you guys did not help me

Rated By Client
 5/5
doc icon homework provider

Got A grade in final exam, John
I still couldn’t believe I got an A grade in my exam. Highly vouched service.

Rated By Client
 5/5
doc icon homework provider

Linda, opted for private tutoring
Subscribed to get online class help for devry acct 212 week 1-8 class​​

Week 5 65%
doc icon homework provider

Acct Course Project, Ryan
Thanks a lot to my writer who followed all my requirements.

Rated By Client
 5/5
xls-icon

Genuine service, Steven
The research paper was much more than I expected! Thanks a lot.

Rated By Client
 4.5/5
doc icon homework provider

Karen, opted for private tutoring
Subscribed to get online class help for liberty BUSI 536 week 1-8 class.

Week 7 88%
doc icon homework provider

Marcus, opted for private tutoring
Subscribed to get online class help for ashford psy week 1-5 class.

Week 3 58%
doc icon homework provider

I got A grade in class, Amanda
with the help of homework provider I made it to pass my acct 505 class.

Rated By Client
 5/5