Advance Auto Parts Go to Yahoo Finance and look for the stock information for the company. Answer the following (In a table format in excel see uploaded file in Learn)

a. What is the most recent stock price listed (Write the Date) - 11/15/16 stock price $142.90

b. How many shares outstanding does the company have outstanding? 73.64M

c. What is the market value of the equity or market capitalization? 12.21B

d. What is the most recent dividend paid

.24

e. What is the stocks Beta a. .79

f. On Yahoo!, go to the bonds link. What is the 3-month Treasury Bill Yield? a. .4

g. Assuming a market risk premium of 7% (check out chapter 10 for statistics behind this number), calculate the cost of equity using CAPM model.

.4 + .79 (.07-.4) this is what I believe the formula is.

h. Calculate the cost of equity using the dividend discount model. (Go to SEC Edgar and look at the last 10-K report.)-Look at dividends paid for the historical periods reported ( You can find it on the CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) ) and calculate the dividend growth rate. Can you calculate the cost of equity using this method?

i. What is the cost of capital using questions g and h above.

j. You need to calculate the cost of debt for the Company. Please download the provided File: AAP Advance Auto Parts Inc debt, bond, rates, credit Morningstar.pdf which includes the current pricing of AAPs bonds. You will need to fill in the provided table on the excel worksheet to calculate the cost of debt. (In case you ever need to find Ways to find bond pricing, it is included in Appendix 1) For term loans and revolving bank facilities information has been provided on the excel worksheet.

k. Like you did in the first project, Search on the SEC Edgar data base and find the Advance Auto Parts most recent 10-K report. Under the tabs notes to financial statements and/or tables for financial statements look for the tab on long term debt. Specifically under the section called Senior Unsecured Notes What is the book value of the notest? How many bonds (Notes) were issued? Assume that each bond (note) has a face value of $1000.

	Coupon	Maturity	Price	YTM	Current Yield	Book Value	No of Bonds Issued	Market Value	BV	Market
	4.50%	1-Dec-23	$ 108.20	4.50%	10.82%	448,847
	5.75%	1-May-20	$ 110.70	5.75%	11.07%	299,377
	4.50%	15-Jan-22	$ 108.60	4.50%	10.86%	299,937
Revolving Faciluty	2.25%	12/1/2018	$ 100.00	2.25%	10.00%	80,000
Term Loan	3.50%	1-Jan-19	$ 100.00	3.50%	10.00%	80,000

l. Calculate the weighted average cost of debt both using Book Value and Market Value of the bonds and compare. What effect would using one over the other have when you calculate the cost of debt? (Note in the case of bank debt use the book value of the debt for both calculations)

m. You now have the necessary information to calculate the WACC of the Company. Calculate it using Book Value weights and Market weights and compare.

	Book Value	Market Value
Tax Rate Assumption	35%	35%
Debt
Equity
Total
Cost of Debt
Cost of Equity
WACC I am not sure what you mean by dividends needed, from the form it tells me that all year dividends equal $.24 For debt it is 1.2B		I need help with g-m if you could that would be great, but it is a lot.