公司理财(罗斯)第12章(英文).pptVIP

12-* 12.5 Estimating International Paper’s Cost of Capital First, we estimate the cost of equity and the cost of debt. We estimate an equity beta to estimate the cost of equity. We can often estimate the cost of debt by observing the YTM of the firm’s debt. Second, we determine the WACC by weighting these two costs appropriately. 12-* 12.5 Estimating IP’s Cost of Capital The industry average beta is 0.82; the risk free rate is 3% and the market risk premium is 8.4%. Thus the cost of equity capital is rS = RF + bi × ( RM – RF) = 3% + 0.82×8.4% = 9.89% 12-* 12.5 Estimating IP’s Cost of Capit