(a) Calculate Home Depot’s cost of equity using CAPM. (2 marks)
(b) Calculate Home Depot’s cost of debt. (2 marks)
(c) Calculate Home Depot’s WACC. (2 marks)
(d) Provide a thorough justification for your choice of the growth rate after year 4. Clearly state any other assumptions you have made. 2022 latest answers
(e) Estimate the years 1-4 free cash flow and the terminal value at the end of year 4.
