1. You now need to calculate the costs of debt for TSLA. Go to finra-markets.morningstar.com, enter TSLA as the company, and field the yield to maturity for each of TSLA's bonds. What is the weighted average cost of debt for TSLA using the book value weights and using the market value weights? Does it make a difference in this case if you use book value weights or market value weights?

2. You now have all the necessary information to calculate the weighted average cost of capital for TSLA. Calculate this using book value weights and market value weights, assuming TSLA has a 21 percent tax rate. Which number is more relevant?

Cost of equity for TSLA= .25 + 0.73(5%) =3.9%