Professional Documents
Culture Documents
1.1
I. II.
III. IV. V.
After tax Interest Expense has not been projected as Google has no long-term debt
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Valuation Assumptions Terminal growth rate Cost of debt Beta Risk free rate (rf ) Market Premium Cost of Equity
b. Take a value for beta
8.0% 5.0%
c.
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II.
Valuation Assumptions Terminal growth rate Cost of debt Beta Risk free rate (rf ) Market Premium Cost of Equity
III.
Calculate Weighed Average Cost of Capital (WACC) a. Take the weighted average summation of cost of debt and cost of equity to calculate WACC
Take the weighted average of the cost of debt and cost of equity to calculate WACC
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1.3
Terminal Value
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1.5
1.6
Enterprise Value
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Equity Value
1.8
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