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1. (15 pts) Given the following information, estimate Boeing's cost of capital? Assume the following information about Boeing: Beta = 1.5 10-year Treasury yield to

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1. (15 pts) Given the following information, estimate Boeing's cost of capital? Assume the following information about Boeing: Beta = 1.5 10-year Treasury yield to maturity (rf) = 1.5% Historical market risk premium (Rm - rf) = 7% Current stock price $208 per share Interest bearing debt $63.6B Share outstanding = 588M Corporate tax rate = 21% Average cost of debt = 4%

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