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NKE

market weight of debt (D/V) 0.047


market weight of equity (E/V) 1.00

inputs for cost of debt (riskfree + CRP)


weighted ave maturity 14.2 years
company bond rating A to AA
riskfree that matches weighted ave maturity 2.00
credit premium over Treasury 0.70
company tax rate 0.25
after-tax cost of debt step 1

inputs for cost of equity (riskfree + beta*MRP)


Treasury rate, 10 year 2.00
stock market risk premium 8.00
company beta (start with default) 1.10
cost of equity step 2

WACC step 3
TSLA

market weight of debt (D/V) 0.013


market weight of equity (E/V) 1.00

inputs for cost of debt (riskfree + CRP)


weighted ave maturity 2.6 years
company bond rating BB+
riskfree that matches weighted ave maturity 0.50
credit premium over Treasury 2.00
company tax rate 0.25
after-tax cost of debt step 1

inputs for cost of equity (riskfree + beta*MRP)


Treasury rate, 10 year 2.00
stock market risk premium 8.00
company beta (start with default) 1.63
cost of equity step 2

WACC 0.00 step 3


Last-- different analysts
try 1.43 and 1.93

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