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What is the cost of capital for the firm

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Reference no: EM133068539

The company is Magellan Financial Group Limited ASX: MFG Estimating Cost of Capital

  • What is the market value of equity?
  • Estimate a market value for debt. ( you might have to collect information on the average maturity of the debt, the interest expenses in the most recent period, and the book value of the debt)
  • What are the weights of debt and equity in the firm?
  • What is the cost of capital for the firm?

Analysing Existing Investments

  • Compare the ROIC vs WACC.
  • What was the firm's economic value added in the most recent financial year?

Assessing Competitive Strengths (SWOT analysis)

  • Who are the primary competitors for this firm, and how does the firm compare with them in terms of both quantitative (size, profitability, risk) and qualitative measures (quality of management, service)?
  • Does the firm have any special strength that no other firm in the sector possesses? Does the firm lag other firms in the sector on any of the measures?

All references are in yahoo finance or bloomberg

Reference no: EM133068539

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