2. Cost of debt estimation. Calculate the pretax cost of debt 'artificially' as risk-free rate + default spread + country spread. Default spread is determined based on the interest coverage ratio, which is operating income divided by interest expenses. Using the financial statement ending 2021 from Yahoo Finance, you are able to observe the latest operating income and interest expenses from the income statement. Relying on the following table, you are able to then match the interest coverage ratio to the typical default spread. (6 marks) Interest Coverage Ratio >8.5 Typical Default Spread 1.25% Australia country spread 0.25% 6.5-8.5 1.75% 0.25% 5.5-6.5 2.25% 0.25% 4.25-5.5 2.50% 0.25% 3-4.25 3.00% 0.25% 2.5-3.0 3.50% 0.25% 2.25-2.5 0.25% 4.25% 5.00% 2.0-2.25 0.25% 1.75-2.0 6.00% 0.25% 1.5-1.75 7.25% 0.25% 1.25-1.5 8.50% 0.25% 0.8-1.25 10.00% 0.25% 0.65-0.8 12.00% 0.25% 0.2-0.65 15.00% 0.25% 8.5 Typical Default Spread 1.25% Australia country spread 0.25% 6.5-8.5 1.75% 0.25% 5.5-6.5 2.25% 0.25% 4.25-5.5 2.50% 0.25% 3-4.25 3.00% 0.25% 2.5-3.0 3.50% 0.25% 2.25-2.5 0.25% 4.25% 5.00% 2.0-2.25 0.25% 1.75-2.0 6.00% 0.25% 1.5-1.75 7.25% 0.25% 1.25-1.5 8.50% 0.25% 0.8-1.25 10.00% 0.25% 0.65-0.8 12.00% 0.25% 0.2-0.65 15.00% 0.25%