Calculate CAPM with a market risk premium

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Reference no: EM133126544

Question - Given

Risk-free rate 1.996

Market value of Equity $277,030,000,000,

Enterprise Value $316,720,000,000

Cash $14,440,000,000

Total cash per share 7.93

Beta 1.19

Total Market Value of long-term debt $19,882,362,061

Bond Coupon rate 7%, Maturity 10years, Price 145.031, Yield 2.164, Outstanding shares 500,000,000; non-callable bond.

Company tax rate 35%.

Required - Calculate CAPM with a market risk premium of 5%; Calculate WACC.

Reference no: EM133126544

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