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28 Sep 2019
Most of this question was answered the tax rate was missing. The tax rate is now included. 22.38%Thank you
Need
WACC calculations in Excel with (a) Cost of Equity calculated in both Dividend Growth Model and CAPM (aka SML), (b) Cost of Debt calculated from Bond Table weighted average,WACC calculation including weighted average Bond Table for Debt Calculations, Equity from both Dividend Growth Model and CAPM Model, and Preferred Stock (if any).
BONDS FOR ____Mattel -r_________________ A B C D E F (A * B) / 100 (D * E)/100 SYMBOL AMOUNT OUTSTANDING LAST TRADE PRICE MARKET VALUE % of TOTAL YTM WEIGHTED YTM Mattel 2.35% 500,000,000 100.7 503,500,000 0.229 1.99 0.456% Mattel 2.35% 350,000,000 97.8 342,300,000 0.156 2.89 0.451% Mattel 5.45% 300,000,000 102.9 308,700,000 0.141 5.24 0.737% Mattel 4.35% 250,000,000 106.2 265,500,000 0.121 2.48 0.300% Mattel 6.2% 250,000,000 111.1 277,750,000 0.127 5.36 0.678% Mattel 1.7% 250,000,000 99.0 247,500,000 0.113 2.83 0.319% - 0.000 0.000% - 0.000 0.000% - 0.000 0.000% Mattel 3.15% 250,000,000 99.9 249,750,000 0.114 3.18 0.362% TOTAL 2,195,000,000 1.000 3.303% po 25.01 D 2,195,000,000 RD 3.30% shares outstanding 342,510,000 beta 0.74 g 10.56% 10 year bond yield rf 2.21 rm 12.44% d1 .38*4 = 1.52 Re Rf+Beta(Rm-Rf) tax rate 22.38%
Most of this question was answered the tax rate was missing. The tax rate is now included. 22.38%Thank you
Need
WACC calculations in Excel with (a) Cost of Equity calculated in both Dividend Growth Model and CAPM (aka SML), (b) Cost of Debt calculated from Bond Table weighted average,WACC calculation including weighted average Bond Table for Debt Calculations, Equity from both Dividend Growth Model and CAPM Model, and Preferred Stock (if any).
BONDS FOR ____Mattel -r_________________ | ||||||
A | B | C | D | E | F | |
(A * B) / 100 | (D * E)/100 | |||||
SYMBOL | AMOUNT OUTSTANDING | LAST TRADE PRICE | MARKET VALUE | % of TOTAL | YTM | WEIGHTED YTM |
Mattel 2.35% | 500,000,000 | 100.7 | 503,500,000 | 0.229 | 1.99 | 0.456% |
Mattel 2.35% | 350,000,000 | 97.8 | 342,300,000 | 0.156 | 2.89 | 0.451% |
Mattel 5.45% | 300,000,000 | 102.9 | 308,700,000 | 0.141 | 5.24 | 0.737% |
Mattel 4.35% | 250,000,000 | 106.2 | 265,500,000 | 0.121 | 2.48 | 0.300% |
Mattel 6.2% | 250,000,000 | 111.1 | 277,750,000 | 0.127 | 5.36 | 0.678% |
Mattel 1.7% | 250,000,000 | 99.0 | 247,500,000 | 0.113 | 2.83 | 0.319% |
- | 0.000 | 0.000% | ||||
- | 0.000 | 0.000% | ||||
- | 0.000 | 0.000% | ||||
Mattel 3.15% | 250,000,000 | 99.9 | 249,750,000 | 0.114 | 3.18 | 0.362% |
TOTAL | 2,195,000,000 | 1.000 | 3.303% | |||
po | 25.01 | |||||
D | 2,195,000,000 | |||||
RD | 3.30% | |||||
shares outstanding | 342,510,000 | |||||
beta | 0.74 | |||||
g | 10.56% | |||||
10 year bond yield rf | 2.21 | |||||
rm | 12.44% | |||||
d1 | .38*4 = | 1.52 | ||||
Re | Rf+Beta(Rm-Rf) | |||||
tax rate | 22.38% |
Beverley SmithLv2
28 Sep 2019