P and G Clorox

Cost Of Capital Tax Rate

Pre tax Cost of Debt 9.18% 9.18%

B 92.5
Coupon 8.25%
F 100
T 15

Cost of equity(DDM)
Divident 3.33 1.23715
Proce 126.25 38.25
Divident yield 2.64% 0.0323437908
Divident growth 11% 13.50%
Cost of equity(DDM) 13.64% 16.73%

Equity Capitalization
EPS 7.12
Price 126.25
Cost of equity(E/P) 5.64%

CAPM
Risk free Rate 8.47% 8.47%
MRP 5.40% 5.40%
Beta 0.95 0.9
Cost of equity 13.60% 13.33%

WACC
Debt 3331 101.29
CMP 126.25 38.25
NOSO 170 55.33
Wequity MKT 21462.5 2116.3725
D/V 13.43% 4.57%
E/V 86.57% 95.43%

WACC 12.59% 13.00%

For Clorox WACC is more because funding through equity is costlier than de
Leverage increases beta
 34% 34%

rough equity is costlier than debt financing which is why Clorox WACC is more