1. Calculate the WACC for a publicly-traded company that has:

a. a beta value of 1.29,

b. an effective tax rate of 12.2%, and

c. Company capital distribution: 40% debt, 60% equity

Use the data from the 9/10/18 value of the Wall Street Journal (below) to calculate your answer. Show your work in the submitted Excel Workbook.

Corporate Borrowing Rates and Yields Spread-/-Treasurys, nbasis pts, 52-wk Range Yeld (%) Total Retum Bond totalretum Index 10-yr Treasury,RyanALM 2944 2.853 DJ Corporate Aggregate Barclays Capital 3360 3.300 a.3445 178 150 High Yleld100,Memll Lynch 5.999 5.949 312 288 376 2515 5470 Fixed-Rate MBS, Bardays 3A50 3.430 na 20 32-14 L19 Munl Master,Menl EMBI Global JPorgan6919 6.858 397 289 407 5560 4528 Last Wkago Last Low High 52-wk 3-yr 5.24 -0.37 3.935 3840 178 2.95 2571 2507 5 17 0.545 2.203 SourcesJP.Morgan, RyanALMS&P Dow Jones Indces, Barclays CapitatMell Lynch Corporate Borrowing Rates and Yields Spread-/-Treasurys, nbasis pts, 52-wk Range Yeld (%) Total Retum Bond totalretum Index 10-yr Treasury,RyanALM 2944 2.853 DJ Corporate Aggregate Barclays Capital 3360 3.300 a.3445 178 150 High Yleld100,Memll Lynch 5.999 5.949 312 288 376 2515 5470 Fixed-Rate MBS, Bardays 3A50 3.430 na 20 32-14 L19 Munl Master,Menl EMBI Global JPorgan6919 6.858 397 289 407 5560 4528 Last Wkago Last Low High 52-wk 3-yr 5.24 -0.37 3.935 3840 178 2.95 2571 2507 5 17 0.545 2.203 SourcesJP.Morgan, RyanALMS&P Dow Jones Indces, Barclays CapitatMell Lynch