Assume that E(rM) = 8% and rf= 2%. use the data provided to calculate the following Amgen's variables as of year-end 2015.

a. Calculate Amgen's cost of debt.

b. Calculate Amgen's cost of equity.

c. What is Amgen's WACC?

d. Given the cash flows of a potential project Amgen is considering, what is the NPY of the project? please use excel

\begin{tabular}{l|r|} \hlineE(rM) & 8.00% \\ \hlinerf & 2.00% \\ \hline Tax rate & 7.65% \\ \hline Beta & 0.60 \\ \hline Outstanding shares & 760,000,000 \\ \hline Market value of stock & 157.89 \\ \hline Market value of equity & 119,996,400,000 \\ \hline Book value per share & $34.88 \\ \hline Total book value of equity & 26,508,800,000 \\ \hline Amgen's debt & 43,231,000,000 \\ \hline Debt to equity ratio (book) & 1.63 \\ \hline Amgen's total value & 163,227,400,000 \\ \hline & \\ \hline & 1,071,000,000 \\ \hline Interest paid, 2015 & 43,231,000,000 \\ \hline Debt, end-2015 & 44,029,000,000 \\ \hline Debt, end-2014 & \\ \hline Average debt, 2014-2015 & \\ \hline \end{tabular}