How can I find risk free rate, market return, and interest paid on debt?

I'm doing a finance project for Coach, Inc. (COH) and I have to calculate cost of equity, cost of debt, and I really don't know where to look for the risk-free rate, market return, and interest paid on debt for this company. Any help will be appreciated.

The long term risk free rate is the government 10-year bond rate, you can find it on yahoo finance. 4.62%

The market return is just the risk-free rate + a premium. 5.5-6%.

The cost of debt, is your interest expense divided by your total debt. That should give you a percentage number.

Good luck!

Risk free rate normally refers to three-month Treasury bill rate (T-bill).

Market Return is often the S&P 500 return.

Interest paid on debt is in the Net Income Statement.

Tags

　　Easy Money 　　Easy Investing 　　Earn Money 　　Direct Investment 　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing

Related information

Best Way To Handle Old Credit Card Debt?

Bad credit can affect many of the opportunities you have in your life, from your ability to purchase a home right down to your ability to rent movies. Today, Americans are finding themselves more i...

How to get out of credit card debt if you have to rely on them to make ends meet every month?

1. You have to stop using credit cards. Sell the car and use public transportation. Discontinue cable television. Get one local-only telephone at a minimum price. Buy only dried vegetables and...

Discuss the following methods of financing the operations of a manufacturing company-factoring of book debts?

Factoring of accounts receivable is a type of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent...

I hear horror stories about credit card debt. Should I really go into the credit card thing?

A credit card is a bad idea, but only for people with no common sense, as it's entirely up to you how you use it. I find it saves me thousands just by enabling me to buy off ebay for instance...

Anyone buy a home with owner financing? how did it work?

I would never go for owner financing because in 3 to 5 years, you'll probably have to refi at that time and no one know what interest rates will be. Back in the 80's the rates were betw...

I am drowning in credit card debt!?

If you are able to make your payments today, then you are still ok. Do three things: 1) Find a way to cut your monthly expenses by $100. Eat cheaper food, drive less, don't buy new cloth...

When delinquent, how much worse is it to settle than to pay off a debt in full?

I am really surprised at the wrong information that was given to you here. It is not true that paying off the account will allow it to be removed from the credit report any faster than if it is set...

I have too much credit card debt but good credit, what should I do? Please help!?

I know no one else that has posted will agree with me, but it sounds to me like Chapter 7 is your best option. I went through exactly what you are going through and you did the best you could. Ev...