1. Click on For Investors then click on Tools and Calculators, Scroll down to FINRA Market Data, you will find the Treasury and yield to maturity for ten-year Treasury bonds listed as 10 Yr Bond (%). This number is the risk-free rate. 2. Next go to the company information and enter TJX to get all the financial information. Once you see the basic information for TJX, find and click on Key Statistics. From the key statistics, collect TJXs market capitalization (its market value of equity), enterprise value (market-value equity + net debt), cash, and beta. The net debt is total long-term debt minus cash and cash equivalent. 3. To get TJXs cost of debt and the market value of its long-term debt, you will need the price and yield to maturity on the firms existing long-term bonds. Go to Bond Issues. A list of TJXs outstanding bond issues will appear, click on each bond to get price and yield-to-maturity, amount outstanding of all the issues. Once you find Amount Outstanding on the right side. Noting that this amount is quoted in thousands of dollars (e.g., $60,000 means $60 million =$60,000,000), record the issue amount in the appropriate row of your spreadsheet. Repeat this step for all the bond issues. Note avoid Call Bond since the yield is the yield to call and not yield to maturity. 4. If there is a significant difference between market value and book value of the debt on the balance sheet: a. The price for each bond issue in your spreadsheet is reported as a percentage of the bonds par value. For example, 104.50 means that the bond issue is trading at 104.5% of its par value. b. You can calculate the market value of each bond issue by multiplying the amount outstanding by (Price 100). c. Do so for each issue and then calculate the total of all the bond issues. This is the market value of TJXs debt. 5. Compute the weights for TJXs equity and debt based on the market value of equity and TJXs market value of debt, computed in Step 2. 6. Calculate TJXs cost of equity capital using the CAPM, the risk-free rate you collected in Step 1, and a market risk premium of 5.5%. 7. Assume TJX has a tax rate of 30%, calculate its after- cost of debt capital. 8. What is the weighted average cost of capital?

9. Calculate TJXs net debt by subtracting its total cash (collected in Step 2) from its debt. Recalculate the weights for the WACC using the market value of equity, net debt, and enterprise value. Recalculate TJXs WACC using the weights based on the net debt. How much does it change? A. How confident are you of your estimate? B. Which implicit assumptions did you make during your data collection efforts?

Just Question 9, please!!!!!!!!!!!!!!!