Estimate the weights of capital for the company

Assignment Help Financial Management

Reference no: EM131914982

Instruction:

You need to work on the mini-projects in Excel. Your final mini-project report should be well-organized and typed in a Word file. Are required to submit both your Word report and Excel files to the instructor using the mini-project submission tool in Blackboard. The style and organization of the project accounts for 10 points.

Mini-Project : Weighted Average Cost of Capital (80 points):

Find 2017 financial statements for Amazon.Com from UHV Mergent Online database, Yahoo! Finance, Google Finance, or other finance sources.

(1) Estimate the weights of capital (debt, preferred stock, and common stock) for the company.

(2) Estimate the before-tax and after-tax component cost of debt for the firm.

(3) Estimate the component cost of preferred stock (if applicable) for the firm.

(4) Estimate the component cost of common equity using CAPM for the firm.

(5) Compute the firm's weighted average cost of capital (WACC). Discuss your findings.

Reference no: EM131914982

Questions Cloud

What will operating cash flow : What will the operating cash flow be if output rises to 16,400 units?

Calculate best-case and worst-case npv figures : Calculate the best-case and worst-case NPV figures.

What is the project net present value in today dollars : What is the project’s net present value in today’s dollars, if the firm waits two years before deciding whether to drill?

How much should you charge for option : Assume that you have the rights to a coal mine and the most recent valuation of the mine was £6.6 million. How much should you charge for the option?

Estimate the weights of capital for the company : Estimate the weights of capital (debt, preferred stock, and common stock) for the company.

Conducting capital budgeting analysis of project : Which of the following is one of the steps necessary for conducting a capital budgeting analysis of a project?

The annual operating cash flow for this project : The applicable tax rate is 40 percent. The annual operating cash flow for this project is $___.

Most appropriate one for evaluating projects : Which of the following capital budgeting techniques is the most appropriate one for evaluating projects?

Company is looking to replace its conveyor belt system : The Easton manufacturing Company is looking to replace its conveyor belt system.

User Account

All Pages