Determine the utilizing general electric

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Determine the following utilizing General Electric Co. information

  • Cost of Equity (Common Stock)

o  Beta  from Regression and two Betas from analysts  

o  Beta Chosen for CAPM and why

o  Capital Assets Pricing Model (include how determined RF and[ RM  or (RM - RF)]

o  Discounted Cash Flow (DCF) (only if dividends - include how determined)

o  Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)

  • Cost of Preferred Stock
  • Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)
  • Market Value of Debt (will have calculated above, but will need to add any long term leases from balance sheet to get total market value of debt)
  • Market Value of Equity
  • Market Value of Preferred Stock
  • Value of Firm
  • Firm's Tax Rate (explain how determined)
  • Weight for Equity
  • Weight for Preferred Stock
  • Weight for Debt
  • WACC (Weighted Average Cost of Capital)

Reference no: EM132409661

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