Project 4- CAPM and WACC

USD in billions Calculation for Capital Debt

Capital from Equity $ 37.18 Current Debt and Capital
Capital from debt $ 14.20 Long term Debt and Capital
Total capital $ 51.38 Totals
% Equity 72%
% Debt 28%
Cost of Equity 5.08%
Cost of Debt 3.33%
Tax Rate 18.48%

WACC 4.42%

CAPM Cost of Debt for GIS 2020

Interest Expense 0.47
Risk-free rate 1.68% Total 0.03326469
Market risk premium 6%
Beta 0.58

Total 5.16%

DDM

D1 $ 0.51
P0 $ 60.95
Growth rate (5 year) 4.16%

Total 5.00%
 2020 2019
$ 2.71 $ 2.87
$ 11.21 $ 11.62
13.92 14.49