On the basis of the financial information given in this case, complete the WACC table that is prepared for this project . What was the WACC for Atlassian as at 2022? What was the WACC one year earlier? Estimate the important financial information such as the after-tax cost of debt, the risk-free rate, the market risk premium, the cost of equity and the weight of debt and equity. Clearly specify and justify the assumptions and calculations required for these analyses (ie. how did you select the beta, risk-free rate, market return, etc). WACC Calculation for Atlasian 2021 2022 Shares Outstanding (in millions) Share Price Market Value Equity Total Market Value of Debt Total Capital - Atlassian Weight of Debt Weight of Equity Cost of Debt Effective Interest Rate for Atlassian Tax Rate After-tax Cost of Debt Cost of Equity Beta Market risk premium Rf Cost of Equity
On the basis of the financial information given in this case, complete the WACC table that is prepared for this project . What was the WACC for Atlassian as at 2022? What was the WACC one year earlier? Estimate the important financial information such as the after-tax cost of debt, the risk-free rate, the market risk premium, the cost of equity and the weight of debt and equity. Clearly specify and justify the assumptions and calculations required for these analyses (ie. how did you select the beta, risk-free rate, market return, etc). WACC Calculation for Atlasian 2021 2022 Shares Outstanding (in millions) Share Price Market Value Equity Total Market Value of Debt Total Capital - Atlassian Weight of Debt Weight of Equity Cost of Debt Effective Interest Rate for Atlassian Tax Rate After-tax Cost of Debt Cost of Equity Beta Market risk premium Rf Cost of Equity
Chapter18: Long-term Debt Financing
Section: Chapter Questions
Problem 2IEE
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On the basis of the financial information given in this case, complete the WACC table that is prepared for this project . What was the WACC for Atlassian as at 2022? What was the WACC one year earlier? Estimate the important financial information such as the after-tax cost of debt, the risk-free rate, the market risk premium, the
WACC Calculation for Atlasian | ||
2021 | 2022 | |
Shares Outstanding (in millions) | ||
Share Price | ||
Market Value Equity | ||
Total Market Value of Debt | ||
Total Capital - Atlassian | ||
Weight of Debt | ||
Weight of Equity | ||
Cost of Debt | ||
Effective Interest Rate for Atlassian | ||
Tax Rate | ||
After-tax Cost of Debt | ||
Cost of Equity | ||
Beta | ||
Market risk premium | ||
Rf | ||
Cost of Equity | ||
WACC |
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