Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please do all parts a-g electrolux of sweden. kri

please do all parts a-g Electrolux of Sweden. Kristian Thalen has just joined the...

90.2K

Verified Solution

Question

Accounting

imageimage please do all parts a-g

Electrolux of Sweden. Kristian Thalen has just joined the corporate treasury group at Electrolux of Sweden, a multinational Swedish appliance maker. Electrolux is considering making an offer for GE's appliance business, and wants to revise its weighted average cost of capital for its analysis in its home currency, the Swedish kroner (SEK). Kristian has been assigned the task. Using the following assumptions, , he goes step by step through the following questions. a. What is Electrolux's cost of debt, after-tax, in SEK? b. What is Electrolux's cost of equity in SEK? c. What is Electrolux's market capitalization? d. What is Electrolux's total value of equity outstanding? e. What proportion of Electrolux's capital structure is debt? f. What proportion of Electrolux's capital structure is equity? g. What is Electrolux's weighted average cost of capital? Component Swedish kroner government bond yield (10-year) Value Electrolux credit risk premium 1.40% Swedish corporate income tax rate 30% Electrolux beta Swedish equity market risk premium (equity return over risk-free rate) Electrolux shares outstanding Electrolux share price Electrolux debt outstanding SEK 11,584,000,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students