Calculating the WACC for Eastman Chemical

In this section, we illustrate how to calculate the WACC for Eastman Chemical, the company we discussed at the beginning of the chapter. Our goal is to take you through, on a step-by-step basis, the process of finding and using the information needed using online sources. As you will see, there is a fair amount of detail involved, but the necessary information is, for the most part, readily available.

Eastman's Cost of Equity Our first stop is the company profile for Eastman available at finance.yahoo.com (ticker: "EMN"). As of mid-2001, here's what the screen looked like:

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