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Essay Financial Accounting Group Assignment

   

Added on  2020-05-28

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Running head: FINANCIAL ASSIGNMENTFinancial AssignmentName of the Student:Name of the University:Authors Note:
Essay Financial Accounting Group Assignment_1

FINANCIAL ASSIGNMENT1Table of Contentsi. Using two appropriate methods calculating the cost of equity of DMGT:.............................2ii. Using two appropriate methods calculating the cost of debt of DMGT:...............................2iii. Calculating the capital structure of DMGT:.........................................................................3iv. Deriving the single most appropriate estimate of DMGT’s WACC from the calculationwith appropriate justification:....................................................................................................3Reference and Bibliography:......................................................................................................6
Essay Financial Accounting Group Assignment_2

FINANCIAL ASSIGNMENT2i. Using two appropriate methods calculating the cost of equity of DMGT:Method 1ValueRisk free rate0.58%Credit ratingBBCredit risk premium2.10%Cost of borrowing2.68%Method 2ValueAnnual interest 22,900,000 Annual average debt 752,000,000 Cost of borrowing3.05%ii. Using two appropriate methods calculating the cost of debt of DMGT:Cost of equityMethod 1ValueRisk free rate0.58%Equity beta0.56Market return1.01%Equity risk premium0.4300%Cost of equity0.34%Method 2ValueDividend0.216Growth rate1.60%Price6.615Cost of equity4.87%iii. Calculating the capital structure of DMGT:Capital StructureValueMarket value of equity 2,009,000,000 Market value of debt 752,000,000 Percentage of equity73%Percentage of debt27%
Essay Financial Accounting Group Assignment_3

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