As an analyst, you were task to compute for the WACC of various companies given the following information. Income tax rate is 30%.Risk free rateBetaMarket returnDebt to equity ratioDettmarginAccentureCo.4%1.2512%2.502%Nestle Co.3%1.511%3.003%Which compeny nes the nighest cost of equity?FedEx Co.2%1.310%4.002.50%Cadence Co.3.50%1.48%3.501.50%

Cost of equity of each company is calculated using following equation Cost of equity = Risk free…

As an analyst, you were task to compute for the WACC of various companies given the following information. Income tax rate is 30%. Risk free rate Beta Market Debt to equity ratio Debt margin Accenture Co. 1.25 2.50 2% Nestle Co. 3% 1.5 3.00 3% Which company has the highest cost of equity? FedEx Co. 2% 1.3 10% 4.00 2.50% Cadence Co. 3.50% 1.4 8% 1.50%

As an analyst, you were task to compute for the WACC of various companies given the following information. Income tax rate is 30%. Risk free rate Beta Market Debt to equity ratio Debt margin Accenture Co. 1.25 2.50 2% Nestle Co. 3% 1.5 3.00 3% Which company has the highest cost of equity? FedEx Co. 2% 1.3 10% 4.00 2.50% Cadence Co. 3.50% 1.4 8% 1.50%

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4AP

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