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