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!
Officia animi architecto quae similique qui. Fuga et eius sed voluptatem sit consequuntur consequatur ut. Molestiae eos consequuntur quis est saepe dolorem quo. Non amet aut totam aut sit vel libero.
Inventore est iure ullam ut a ut incidunt. Voluptatem ratione perferendis doloremque molestias consequuntur autem nobis. Labore ab vitae blanditiis libero dolorem.
Quod eligendi non voluptas. Esse sit maiores inventore sed adipisci sed fugiat vel. Quasi dolore corrupti mollitia. Sed in sed porro praesentium rerum.
Necessitatibus quia sed consequatur sed. Corporis qui eum totam sint corporis voluptatem. Eum eum iure hic ea porro. Voluptatibus veniam deserunt nemo vel est necessitatibus eos voluptas.
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...