Weighted average cost of capital evaluate 2012 financial

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Reference no: EM13351346

Weighted Average Cost of Capital: Evaluate 2012 financial statements and other financial data (example: beta) for Caterpillar (Stock ticker: CAT) from Google Finance, Yahoo! Finance, UHV Mergent Online database, or other sources.

a) Evaluate the company's weights of capital (debt, preferred stock and common stock).

b) Estimate the company's before-tax and after-tax component cost of debt.

c) Determine the firm's component cost of preferred stock.

d) Determine the component cost of common equity by using CAPM.

e) Evaluate the firm's weighted average cost of capital (WACC).

Reference no: EM13351346

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