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Home › Finance Help › Calculate the Cost of Debt (WACC) for 2 companies
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Calculate the Cost of Debt (WACC) for 2 companies

Date Posted: 06/12/2020
Category: Finance
Due Date: 06/12/2020
Instruction
Calculate the Cost of Debt of 2 companies. This is my part of the group project (to calculate the cost of debt for these 2 firms) and this submission is needed for a bigger group project to calculate the WACC of these two companies. (not required by you) You can refer to page 547- 551 of the course textbook (attached) for an example, more information and concepts and terms The companies under consideration are: 1. Canadian National Railway (CNR) - annual report attached 2. Canadian Pacific Railway (CP) - annual report attached The Submission Requirements: 1. A word document showing your working 2. An excel file with the data Also, attached is a pdf named "Financial, Economic and Market Risk Premium Forecasts - 2021.pdf " You can use these for sources for book value of the bonds or any other value needed. Please cite all your resources and data
Attached
Download File 1 (pdf)
Download File 2 (pdf)
Download File 3 (pdf)
Download File 4 (pdf)
Tutor Uploads
Download File 1 (xlsx)
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HavardGraduateWriter 5 years, 9 months ago
Rated 9.42 earned 51369.88 around 1959 assignments.
Hello, I am well conversant with this subject and at a position of delivering the best results on time. Kindly consider my bid.
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  • How soon can you do it?
    User_33166 | Dec 06, 2020, 22:54 PM
  • 24 hours
    HavardGraduateWriter | Dec 06, 2020, 22:55 PM
  • Hi, I have assigned it to you
    User_33166 | Dec 06, 2020, 22:56 PM
  • Can you please do it sooner
    User_33166 | Dec 06, 2020, 22:56 PM
  • How about in 15 hours?
    User_33166 | Dec 06, 2020, 22:57 PM
  • Alright
    HavardGraduateWriter | Dec 06, 2020, 22:57 PM
  • In how long do you need it??
    HavardGraduateWriter | Dec 06, 2020, 22:57 PM
  • Thank you
    User_33166 | Dec 06, 2020, 22:58 PM
  • I need it as soon as possible
    User_33166 | Dec 06, 2020, 22:58 PM
  • This is not a long task and you do not need to work on aesthetics
    User_33166 | Dec 06, 2020, 22:58 PM
  • I am only interested in the calculations and how you did them
    User_33166 | Dec 06, 2020, 22:59 PM
  • Just need the step by step working of the calculations in a word file and the data in an excel file (tabular form)
    User_33166 | Dec 06, 2020, 23:00 PM
  • Alright. On it
    HavardGraduateWriter | Dec 06, 2020, 23:03 PM
  • Hi, what's the update? How much have you completed?
    User_33166 | Dec 07, 2020, 13:41 PM
  • I have done 3/4 of the work...still working on it
    HavardGraduateWriter | Dec 07, 2020, 13:48 PM
  • Okay, Please do not forget to cite all your data and resources, Thank you
    User_33166 | Dec 07, 2020, 13:50 PM
  • Okey
    HavardGraduateWriter | Dec 07, 2020, 13:55 PM
  • Hi, what's the update? How much longer will it take?
    User_33166 | Dec 07, 2020, 19:54 PM
  • One hour...2 hours maximum
    HavardGraduateWriter | Dec 07, 2020, 19:55 PM
  • Okay, great! Thank you!
    User_33166 | Dec 07, 2020, 20:26 PM
  • Hello, I have uploaded the work, you can have a look at it and kindly release the payment
    HavardGraduateWriter | Dec 07, 2020, 23:01 PM
  • Hello, where is the word doc showing the calculations and the formula being used?
    User_33166 | Dec 08, 2020, 00:04 AM
  • I needed that as well as mentioned before
    User_33166 | Dec 08, 2020, 00:04 AM
  • Also, did you use the cost of debt formula provided in the textbook? I don't see it anywhere
    User_33166 | Dec 08, 2020, 00:04 AM
  • I have used similar formulae included in the book. That is, taking the proportion of each debt multiplying by the corresponding yield to maturity.. That's the same formular in the book.
    HavardGraduateWriter | Dec 08, 2020, 00:41 AM
  • Also, the formular used is just simple multiplication and addition which wont show in the word document unless everything is copied again to word document
    HavardGraduateWriter | Dec 08, 2020, 00:43 AM
  • I went an extra mile to use another alternative method to see if the answers will be identical ..and they are almost similar
    HavardGraduateWriter | Dec 08, 2020, 00:45 AM
  • Got it! Thank you! I am releasing the payment now!
    User_33166 | Dec 08, 2020, 01:29 AM
  • Hello, Which formula did you apply from the book? I cannot seem to find it?
    User_33166 | Dec 08, 2020, 02:46 AM
  • Did you refer to page 547-551 as instructed by the professor?
    User_33166 | Dec 08, 2020, 02:47 AM
  • Yes I did
    HavardGraduateWriter | Dec 08, 2020, 02:50 AM
  • Is the right most column on both workbooks the book value or the market values?
    User_33166 | Dec 08, 2020, 03:49 AM
  • Is the cost of debt that you have provided based on book value or market value?
    User_33166 | Dec 08, 2020, 03:49 AM
  • And how did you calculate the alternative value?
    User_33166 | Dec 08, 2020, 03:51 AM
  • The cost is based on the book value.. In alternative method, I took the interest expense divided by the total debt essentially getting the effective interest rate for each year and finally finding the average rate.
    HavardGraduateWriter | Dec 08, 2020, 07:04 AM
  • How did you calculate the YTM for both companies?
    User_33166 | Dec 08, 2020, 21:04 PM
  • YTM of bond with different maturity period are given. I have provided you with the sources
    HavardGraduateWriter | Dec 08, 2020, 21:06 PM
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calebwire 5 years, 9 months ago
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