Assignment, Finance and Accounting

Words: 187
Pages: 1
Subject: Essays

Project description
go to Yahoo! Finance to get information on Eastman Chemical (EMN)

Under Profile and Key Statistics, you can find the following information:
# of shares outstanding
Book value per share
Price per share
Beta

Under analysts estimates, you can find analysts estimates of earnings growth (use as a proxy for dividend growth)

The Bonds section at Yahoo! Finance can provide the T-bill rate

Use this information, along with the CAPM and DGM to estimate the cost of equity
Go to FINRA to get market information on Eastman Chemicals bond issues
Enter Eastman Ch to find the bond information
Note that you may not be able to find information on all bond issues due to the illiquidity of the bond market

Go to the SEC website to get book value information from the firms most recent 10Q
Find the weighted average cost of the debt
Use market values if you were able to get the information
Use the book values if market information was not available
They are often very close

Compute the WACC
Use market value weights if available

the solution should be in XL sheet.