7. How should Dale and Lee go about estimating the cost of long-term debt? (10)

8. If Walmart had preferred shares, or planned to issue preferred shares, how

would Dale and Lee deal with them? (5)

9. How might Dale and Lee go about estimating the cost of equity? (10)

10. What is the overall weighted average cost of capital (WACC)? (10)

11. How does all of this relate to hurdle rates that Walmart might use? (5)