1. Find MARKET WEIGHT of debt and equity (if applicable also preferred stock) for Domino's Pizza, Inc. (DPZ).

(you may use book value of debt as a proxy for market value of debt).

2. FIND THE REQUIRED RETURN OF BONDS. (REMEMBER IN EQUILIBRIUM THE REQUIRED RETURN WILL EQUAL THE YIELD TO MATURITY).

a. EXCLUDE ALL BONDS WITH LESS THAN 2-YEAR MATURITY

b. YOU MAY NEED TO MAKE ADJUSTMENT upward IF BOND IS CALLABLE

3. Find the TAX RATE

Data:

Balance Sheet as of 12/31/2018 Info:

Long Term Debt= $3,495,691

Total Shockholders Equity= $-3,039,921

AND/OR

Domino's Pizza's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Aug. 2019 was $3,609 Mil

Shares outstanding for the quarter ending Sept. 30, 2019, were .042B

Nov. 5, 2019, stock price was 276.31