1. 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

Domino's Pizza Info. as of Aug. 2019:

Short-Term Debt: $68 Mil

Long-Term Debt: $3,609Mil

Total Stockholder's Equity: $-2,936 Mil

Book value of debt=latest two-year average short-term debt and Cap. Lease Obligation + Long-term Debt & Cap. Lease obligation Book value of debt= $34.1085 Mil + $3308.5905 Mil = $3342.699 Mil

Average Tax Rate: 23.055%