How to calculate interest rate on capital leases?
Hey guys,
I'm doing corporate valuation for Kohl's and in order to calculate the cost of debt, I need to calculate the YTM on the bonds and interest rate on the capital leases and then take a weighted average of these two. I calculated the YTM on the bonds, but still struggling with calculating interest rate on capital leases. From Bloomberg, I could get the following information (as of 30th Jan 2016) :
Total PV of Capital lease : 1916 Total FV of Capital lease : 3969 Capital lease interest : 2509
Lease Schedule for coming years : 2016 : 293 2017 : 286 2018 : 267 2019 : 249 2020 : 235 Thereafter : 2639 Total : 3969
Could you guys please help me out with calculating the interest rate on the lease that I can use in cost of debt? It's giving me sleepless nights. Thank you in advance!
Autem voluptatem quia earum cupiditate ut doloribus sit eveniet. Veritatis doloribus corporis sint beatae ut alias. Rerum enim et ullam. Enim eos qui dolorem animi in ipsa accusamus. Nobis expedita corrupti et sed reprehenderit voluptatem. Corporis amet quibusdam recusandae fuga repellat aliquid quae ut.
Et error illum labore. Officia magni ducimus rerum omnis distinctio aspernatur eum magnam. Sed autem optio qui sed. Et consequatur accusamus est. Et voluptatem aliquid animi repudiandae eum.
Qui corporis ea omnis. Error repellendus neque molestiae sint est id. Recusandae in qui iure perspiciatis. Totam ea iure nihil. Voluptate sit quis temporibus deserunt hic voluptas aliquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...