Boeing_777-Cost_of_Capital

Boeing_777-Cost_of_Capital - Beta Beta Beta Beta Beta Value...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Boeing 777 Bu = Unlevered Beta Beta = Levered Beta Beta = Bu + Bu(D/E)(1-T) Beta = [1 + (D/E)(1-T)]Bu Bu = [Beta]/[1 + (D/E)(1-T)] Definitions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Boeing 777 Grumman Grumman Northrup Northrup Lockheed Lockheed Index Levered D/E Levered D/E Levered D/E Beta Ratio Beta Ratio Beta Ratio Value Line 0.950 1.756 1.000 1.288 1.100 1.182 Datastream 0.530 1.756 0.940 1.288 0.970 1.182 58 months 0.800 1.756 0.740 1.288 0.870 1.182 12 months 0.730 1.756 0.720 1.288 0.690 1.182 60 days 0.680 1.756 0.500 1.288 0.520 1.182 NYSE 58 months 0.860 1.756 0.790 1.288 0.950 1.182 12 months 0.800 1.756 0.770 1.288 0.750 1.182 60 days 0.730 1.756 0.530 1.288 0.570 1.182 Tax Rate = 34%
Background image of page 2
Boeing 777 Grumman Grumman Northrup Northrup Lockheed Lockheed Index Levered Unlevered Levered Unlevered Levered Unlevered Beta
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Beta Beta Beta Beta Beta Value Line 0.950 0.4400 1.000 0.5405 1.100 0.6179 Datastream 0.530 0.2455 0.940 0.5081 0.970 0.5449 S&P 500 58 months 0.800 0.3705 0.740 0.4000 0.870 0.4887 12 months 0.730 0.3381 0.720 0.3892 0.690 0.3876 60 days 0.680 0.3150 0.500 0.2703 0.520 0.2921 NYSE 58 months 0.860 0.3983 0.790 0.4270 0.950 0.5337 12 months 0.800 0.3705 0.770 0.4162 0.750 0.4213 60 days 0.730 0.3381 0.530 0.2865 0.570 0.3202 Boeing 777 Bbu = Unlevered Boeing Beta Bdu = Unlevered Defense Beta Bcu = Unlevered Commercial Beta Bbu = (Bdu)*(Wd) + (Bcu)*(Wc) Bcu = [Bbu - (Bdu)*(Wd)]/[Wc] Definitions...
View Full Document

Page1 / 4

Boeing_777-Cost_of_Capital - Beta Beta Beta Beta Beta Value...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online