Asked by:

Hazelnut
Rating : No Rating
Questions Asked: 1
Tutorials Posted: 0

 

$8.00 Calculating WACC and YTM for Harley Davidson

• From Business: Finance
• Closed, but you can still post tutorials
• Due on Jan. 09, 2009
• Asked on Jan 06, 2009 at 8:27:33PM

Q:

Part(1) As part of an assignment I need to calculate WACC for Harley Davidson for years 2006 and 2007.

I am familiar with the CAPM formula, ke=rf+Bj(rm-rf). However, I am trying to determine beta for 2006 and 2007 (I can only find HD's current - 2008 beta) and risk free rate/market risk premium as of 2006 and 2007 so I can plug into my formulas. I assume I should use the info. as of 2006 and 2007 to determine WACC for those years.

Can anyone help direct me to where I can find this info. for each specific year, as it does not appear to be on any of the financial websites I have searched or HD's annual report and financial statements for those years.

Part (2) Long term debt for HDFS as of the 2007 annual report was notes as follows: 400 million maturing 12/08 at 3.63%; 200 million maturing 12/2010 at 5.00%; and 400 million maturing 12/2012 at 5.25%. I want to confirm which Yield To Maturity formula I should use here.

I would like someone to point me in the right direction as far as where to look for the 2006/2007 beta, risk free and market risk figures to use in my CAPM formula and confirm correct YTM formula so I know I am on the right track, thanks!!

 

Attachments: