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WACC question [推广有奖]

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楼主
lewis119 发表于 2007-4-7 11:51:00 |AI写论文

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For example: China Mobile Limited (0941.hk)

if the market capitalization= # of outstanding share x stock price, what will the following answers be?
1. if the 75% equity interest held by company, 25% equity held by public investors, is the market value of equity = mkt cap/25%?

2. or mkt cap=MV of equity?

If I can not find the MV of debt, what can I do for it?

the cost of debt can be calculated YTM by the bond price and coupons. If I failed to find such information, what can the extreme decision be made?

Is the cost of equity calculated by CAPM? using the historical stock return against
historical mkt return or expected future return? what kind of risk-free rate should be
use? or using Gordon's model?

Please give me some suggestions

If you find some information about the China Mobile, please post the link for me.

Thanks all.

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关键词:question Quest wacc ACC TIO question wacc

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stevensym 在职认证  发表于 2007-4-7 16:47:00

question 1, yes. but you need to check whether that 75% is prefered stock or not. if so, the prefered stock will be calculated as debt.

usually 30 year treasure bond as the risk free interest. if not available, I think we can use the bank saving rate for a 30 years note, annually componded.

Debt interest can be calculated by weight average of the non-current liability. Check whether the company has a ratio for Coverage of interest. Can get hint from this figure.

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