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Calculate the WACC of Dracula Enterprises from the following information using both the CAPM model...

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Finance

Calculate the WACC of Dracula Enterprises from the following information using both the CAPM model and Discounted Cash flow Method. The tax rate is 28 %. The company has issued 5-year AA rated debt of $ 400,000 which is trading at a discount of 7 %. The company has issued 70,000 shares with a par value of $ 10 and have been issued one before. The book value of the equity is 700,000 The shares are trading at a value of $ 43 per share. Given the interest rate component information below, determine the yield on a 5- year, A-rated bond. Risk free rate 5.9% Inflation premium 4.5% 5-year Maturity Risk Premium 2.0% 1-year Maturity Risk Premium 1.25 % AA Default Risk Premium 0.6% A Default Risk Premium 1.3% The return on the market was 10 % for the year The beta of Dracula Enterprises is 1.43 The recent dividend paid by the company was $ 3.00 and the next year dividend will be $ 3.5

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