Estimate the cost of equity for dell

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Estimate the cost of equity for Dell, go to finance.yahoo.com and enter the ticker symbol "DELL." Follow the various links to find answers to the following questions: What is the most recent stock price listed for Dell? What is the market value of equity, or market capitalization? How many shares of stock does Dell have outstanding? What is the beta for Dell? Then go back to finance.yahoo.com and follow the "Bonds" link. What is the yield on 3-month Treasury bills? Using the historical market risk premium, what is the cost of equity for Dell using the CAPM?You now need to calculate the cost of debt for Dell. Go to https://www.bloomberg.com/markets/rates-bonds, enter Dell as the company and find the yield to maturity for each of Dell's bonds. If the bond prices are not available, use the formula below to estimate cost of debt.rd = Interest expenses / Total long-term debt

Interest expenses appear on the income statement and total long-term debt appears on the balance sheet.What is the weighted average cost of debt for Dell using the book value weights and the market value weights? Does it make a difference in this case if you use book value weights or market value weights?You now have all the necessary information to calculate the weighted average cost of capital for Dell. Calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has a 35 percent marginal tax rate. Which cost of capital number is more relevant?

Reference no: EM133120821

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