INPUTS

Formula Macro Data

βe=βa+D/E(βa-βd)=βa*(1/(1-L)) Risk Premium 7.43%
βa=E/V*βe+D/V*βd Risk Free Rate 8.95%
Re=Rf+βe(Rm-Rf) Tax Rate 44%
Debt Rate Premium 1.3%

Capital Structure

Market Value of Equity Value of Debt

Price per share Debt
Number of Shares outstanding
Market Value of Equity

Asset Beta

Entity

Equity Beta
Market Leverage
Asset Beta

Entity Asset Beta

Cost of Capital

Equity Beta
Cost of Debt
Cost of Equity Re - CAPM
WACC
Leverage
Actual D/V 41%
Target D/V 60%
INPUTS

Formula Macro Data

βe=βa+D/E(βa-βd)=βa*(1/(1-L)) Risk Premium
βa=E/V*βe+D/V*βd Risk Free Rate
Re=Rf+βe(Rm-Rf) Tax Rate
Debt Rate Premium

Capital Structure

Market Value of Equity Value of Debt

Price per share Debt
Number of Shares outstanding
Market Value of Equity

Asset Beta

Entity Comparable 1

Equity Beta Equity Beta

Market Leverage Market Leverage
Asset Beta Asset Beta

Entity Asset Beta

Cost of Capital

Equity Beta
Cost of Debt
Cost of Equity Re - CAPM
WACC
Leverage
Actual D/V
Target D/V

Comparable 2 Comparable 3

Equity Beta Equity Beta

Market Leverage Market Leverage
Asset Beta Asset Beta