Pmb

20.00%

Note that smaller firms need higher coverage ratios than the larger firms to get the same rating.

Note that smaller firms need higher coverage ratios than the larger firms to get the same rating.

• The tax rate used in the analysis is 40% and the long term bond rate at the time of this analysis was 4%.

Based upon this information and using the same approach that we used for Disney, the cost of capital and firm value are estimated for Bookscape at different debt ratios. The information is summarized in Table 8.15.

Table 8.15: Costs of Capital and Firm Value for Bookscape
Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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