Question: Your group has been assigned to estimate the Weigh
Your group has been assigned to estimate the Weighted-Average-Cost-of-Capital(WACC) for IBM, conduction relevant sensitivity analyses, and report yourfindings.Conduct adequate sensitivity analyses of how factors that were problematic in estimationof WACC will affect your computations. Present your results in a easily legible table.Prepare a memorandum to the Corporate CFO stating yourestimate of the firm’s WACC (6.33%)
You may want briefly state your estimates, your centra lassumptions, and the results of any sensitivity analyses that you have conducted. Thinkabout what information is essential to include in the text, and what might be bestpresented in tabular form. The CFO has also requested that you include an appendix to the main document, describing and justifying the assumptions that you used to estimatethe required return on equity capital.
** Here is the sensitivity analysis I conducted**