Advanced Principles of Financial Management
Calculate the Intrinsic Value of Your Company: Calculating the Cost of Capital: The WACC is computed from the given variables from the page for Tootsie Roll Industries since they reflect the right parameters in use at the company. WACC= E ÷ (E+D) × Cost of equity + D÷ (E+D) ×Cost of Debt ×(1-Tax Rate) 0.9665×4.678+0.0035×1.2978× (1-29.918%) 4.668 b. Calculating Free Cash Flow to the Firm […]