BF037: Calculate the Weighted Average Cost of Capital of the assigned company using CAPM: Corporate Finance Assignment, ISCA, Singapore

(a) Calculate the Weighted Average Cost of Capital of the assigned company using CAPM.

• Determine the cost of debt of the company.
• Determine the corporate tax rate.
• Determine the risk-free rate.
• Determine the market rate of return.
• Determine the risk beta of the company.
• Compute the cost of equity of the company.
• Determine the weights of debt and weights of equity using the book and market values.
• Compute the WACC of the company. You are to indicate all assumptions made with supporting references.

(b) Provide an analysis of the assigned company’s current capital structure in comparison to the industry. Discuss the key changes in the assigned company’s capital structure over the last two years as a result of the coronavirus pandemic.