class notes lec 1-12 - The WACC instructions are the following from the syllabus Obtained the company’s 10-K report containing key information such as

class notes lec 1-12 - The WACC instructions are the...

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The WACC instructions are the following from the syllabus: Obtained the company’s 10-K report containing key information, such as the overall corporate tax rate for use in the pre- and post-tax debt costs. Determined the company’s Beta coefficient from publicly available information and stock data on the company. Determined an appropriate risk-free rate available from U.S. Treasury data posted each day on a website. Do "NOT" use the interest rates provided in the instruction assignments for the risk-free rate and for the market risk premium. You will have to find an appropriate risk-free rate from the US Federal Reserve Current Interest Rates link as Do "NOT" use the market risk premium provided in the instructions document, but rather determine the market return (RM) for the appropriate benchmark for fiscal 2014. You may want to find the return of the S&P 500 US Equity Index for the SPY or for the ^GSPC. You may also want to investigate the Sector return for fiscal 2014 for your company within the S&P 500 US Index Equity benchmark. Please show how the risk-free rate and how the return of the market rates were determined in the paper. Begun work in determining the overall stock market rate of return, particularly by reviewing the work done by Professors Fama and French.
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