Allergan (AGN):

corporate tax rate = 12.5%

cost of debt = 3.4867%

cost of preferred stock = 13.75/161.62 (1-0.055) = 9%

cost of common equity = 8.28%

capital structure =

Total Debt to Total Equity = 40.74

Total Debt to Total Capital = 28.95

Total Debt to Total Assets = 25.41

Interest Coverage = -0.26

Long-Term Debt to Equity = 37.51

Long-Term Debt to Total Capital = 24.87

Long-Term Debt to Assets = 0.22

WACC = E / (E + D) * Cost of Equity + D / (E + D) * Cost of Debt * (1 - Tax Rate)

WACC = 0.6499 * 8.28% + 0.3501 * 3.4867% * (1 - 65.6%)

WACC = 5.8%

1) Use the WACC as the discount rate to conduct capital budgeting analysis for a project that the firm is considering and then decide whether it should be accepted or not which is Building a new Building for $1 million. Include the financial statements you used or other documents to get those numbers.