Determine the WACC for a Kellogg Company as well as data you can find through research. Write a brief report in which you state your determination of WACC, describe and justify how you determined the number, and provide relevant information as to the sources of your data. Assume the Market Risk Premium is 4% unless you can develop a better number.
rf is the risk free rate. The YTM on 10 year US Treasury securities is a good approximation.
You may assume a corporate tax rate of 40%.
The synopsis of Kellogg Company should include
contains the following elements:
1. The calculated WACC.
2. How data was used to calculate WACC. This would be the formula and the formula with your values substituted.
4. A discussion of how much confidence in the answer. What were the limiting assumptions that you made, if any.