Macroeconomics HW3September 26, 2021
1. Estimate the cost of equity for Coca-Cola (KO) using the CAPM. (Use 10 year Treasury for the Risk Free Rate and use the beta from yahoo finance. Review the dividend history. Estimate the 2015 dividend. Use a multistage dividend discount model where the dividend growth rate slows from its current growth rate to 4% forever after 10 years. What is your estimated value of KO?
2. EMC Corporation has never paid a dividend. Its current free cash flow is $510,000 and is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 9%. Calculate EMC’s equity value if the net debt is $750,000.
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post homework about investment due day is tomorrow morning 1 appeared first on Nursing Writers Hub.
“Is this question part of your assignment? We Can Help!”