Sprint nextel has 221 billion in total debt which


Question - Sprint Nextel has $22.1 billion in total debt which approximates market value. Interest expense for the year was approximately $1.5 billion. The Company's market capitalization is approximately $17.2 billion, its market beta is 2.12 and its marginal tax rate is 35%. Assume that the risk-free rate equals 4.6% and the market premium equals 5%

Estimate Sprint Nextel's Cost of debt capital?

What does a beta of 2.12 mean regarding the valatility of Sprint Nextel's stock price?

Estimate Sprint Nextel's Cost of equity capital?

Estimate Sprint Nextel's Weighted average cost of capital?

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Accounting Basics: Sprint nextel has 221 billion in total debt which
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