Estimate cost of company-estimate cost of debt and equity

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Estimate the cost of a company.

Select a company from the FAST FOOD industry and estimate the WACC for that company.

Some companies do not have allocation in preferred stocks. You can set the allocation as zero. Then the WACC would be calculated as the average cost between Debt and Equity.

As we have learned from last session, there are different approaches to estimate the cost of debt and equity. Due to the limited source of data, our template shows a simple and general case, you are encouraged to try different approaches.

Reference no: EM131571446

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