What is the value and cost of debt

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Questions -

Q1. What is the value and cost of debt that should be included in the cost of capital formula? Be sure to discuss long-term debt, short term debt, leases and etc.

Q2. What is the weight of the equity that should be included in the cost of capital formula? Be sure to discuss retain earnings, market values, book values, and target values.

Q3. What is the risk free rate that should be included in the formula prior to the MRP calculation? There are lots of options, explain your selection.

Q4. What is the risk free rate that should be included in the MRP? There are lots of options, explain your selection.

Q5. Since you have determined the risk free rate, how do you determine the market risk premium? Explain the numbers you used to determine this amount.

Reference no: EM132861187

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