Case Scenario:
I really need help with this assignment. We were given 7 firms and we must answer the three questions based on the information we find on Yahoo! Finance or any other financial website. I don't have a good foundation on the subject. If someone can be kind enough to answer the 3 questions for 1 firm, I can use that as a guide to answer the questions for the other 6 firms. DELL is a strong solid company. Please set DELL as the example firm. I am not asking for my assignment to be done, I need a guide.
Answer these questions for each of the companies (7) assigned to you:
1) Estimate the total market value of long-term debt and equity
2) The firm's cost of debt and equity capital
3) And the appropriate after-tax weighted average cost of capital (WACC) for the firm
Use Yahoo! Finance or Morning star to obtain figures. Obviously you must use current information, or figures (2005 or 2004), in order to calculate the market value. Remember to be consistent in answering the questions.