Amazon equity beta Market risk premium 1.5 5.00% 10-year Treasury 1 Jan 2020 Cost of equity 1.90% Cost of debt 2.00% Shares outstanding 31 Dec 2019 504 million Debt/ (debt + equity) 2.60% Tax rate 17.0% Discount rate (WACC) Growth rate

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 21SP: Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a....
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How do I calculate "Cost of equity", "Discount rate (WACC)", and "growth rate"?

Amazon equity beta
Market risk premium
1.5
5.00%
10-year Treasury 1 Jan 2020
Cost of equity
1.90%
Cost of debt
2.00%
Shares outstanding 31 Dec 2019
504 million
Debt/ (debt + equity)
2.60%
Tax rate
17.0%
Discount rate (WACC)
Growth rate
Transcribed Image Text:Amazon equity beta Market risk premium 1.5 5.00% 10-year Treasury 1 Jan 2020 Cost of equity 1.90% Cost of debt 2.00% Shares outstanding 31 Dec 2019 504 million Debt/ (debt + equity) 2.60% Tax rate 17.0% Discount rate (WACC) Growth rate
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