Go to Yahoo!Finances site for Eastman Chemical and calculate its WACC for 2017: https://finance.yahoo.com/quote/EMN?p=EMN The...
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Go to Yahoo!Finances site for Eastman Chemical and calculate its WACC for 2017:
https://finance.yahoo.com/quote/EMN?p=EMN
The companys average tax rate = 21.235%.
Cost of Equity:
Find the risk-free rate Rf (3-month T-bill):
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Find the S&P 500 market return Rf year-to-date.
Use CAPM to estimate the cost of equity (RE
Cost of Debt:
Obtain its interest expense from 2017 income statement.
Obtain its total debt borrowing for 2017 balance sheet:
WACC= (E/V x RE) +(D/V x RD x (1-Tc)
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