Find pfizers cost of equity capital opportunity cost of


The Balance Sheet for Pfizer, Inc. is listed below. According to p.106 of Appendix A of the firm’s 2015 financial statement, Pfizer has $3.3 billion in unfunded pension obligations that are included as part of noncurrent liabilities. The average interest rate on its long-term loans is 5.18%. In 2015, the firm paid $6.94 billion in dividends, a 5% increase per share over 2014. This growth rate is expected to be constant. Pfizer has 6 billion shares of common stock and is currently trading at $35/share. Its marginal tax rate is 30%. Find Pfizer’s cost of equity capital, opportunity cost of capital, and weighted average cost of capital. ( please show work )

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Financial Management: Find pfizers cost of equity capital opportunity cost of
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