Rondo 6 WACC
December 31, 2019 book values = target capital structure/weightings
Target capital structure.
Debt – use the interest rates for the bank loan and mortgage bond per the case
Equity – Re for common stock and retained earnings = 13.00%
Tax rate = 25%
Shows formulas and calculations for all
Rondo 7 – Special Project / Capital Budgeting
Use these four capital budgeting methods
NPV
IRR
PI
PB
Use WACC calculated in Rondo 6
OCF
High level Exec summary – Is the project a “Go” or “No-Go”, and WHY?