Need Help ?
Have a Question ?

(Solved): UPS Was Trading At $96.23 Per Share On August 31st. It’s Dividend Per Share Was $3.12, Its Market ...

UPS was trading at $96.23 per share on August 31st.  It’s dividend per share was $3.12, its market Beta is .99, its borrowing rate is 2.4%. and its tax rate is 37%.  The company has $85.26 billion in equity and its long term debt is $15.52 billion.  The risk free rate is 2.5% and growth rate is 4%.


1) cost of debt, cost of equity, wacc

Expert Answer

Solution:- Calculation of cost of debt: Cost of debt= Interest rate*(1-tax rate)= 2.4%*(1-37%)= 1.512% Calculation of cost of equity: Using Gordon growth
We have an Answer from Expert Buy This Answer $6