Beta 0.8 The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rockets, and satellites worldwide. Boeing is among the largest global aircraft manufacturers, the second-largest defense contractor in the and the largest exporter in the United States by dollar value. The financial statements of Boeing Company are given in the appendix. You also collect the information below for Boeing in Table 4 and Table 5. You wish to calculate the cost of equity, cost of debt, and WACC for Boeing company in 2015. Table 4: Information for Boeing Company Year Quarter Dividend Paid Stock Price (Boeing Co.) $150.00 2015 04 $1.09 2015 Q3 $1.09 T-bill Yield (3 months) 0.50% 2015 Q2 $1.09 T-bill Yield (6 months) 0.50% 2015 Q1 $1.09 T-bill Yield (12 months) 0.50% 2014 04 $0.91 Market risk premium 4.50% 2014 Q3 $0.91 2014 Q2 $0.91 $0.91 2013 Q4 $0.73 2013 Q3 $0.73 2013 Q2 $0.73 2013 Q1 $0.73 2012 Q4 $0.49 2012 Q3 $0.49 2012 Q2 $0.49 2012 Q1 $0.49 2011 04 $0.40 2011 Q3 $0.40 2011 Q2 $0.40 2011 01 $0.40 2014 Q1 Table 5: Boeing's bonds trading in the market Time To Maturity Par value Price 30 YEARS $100 $102.90 10 YEARS $100 $104.80 $100 $94.50 Coupon Rate Book Value (million) 4.85% $580.14 3.75% $6,005.12 2.80% $4,596.74 5 YEARS 59. The weighted average cost of debt for Boeing using the book value weights is closest to? Select one: O a. 3.18% O b. 3.61% O c. 3.96% O d. 4.67% Beta 0.8 The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rockets, and satellites worldwide. Boeing is among the largest global aircraft manufacturers, the second-largest defense contractor in the and the largest exporter in the United States by dollar value. The financial statements of Boeing Company are given in the appendix. You also collect the information below for Boeing in Table 4 and Table 5. You wish to calculate the cost of equity, cost of debt, and WACC for Boeing company in 2015. Table 4: Information for Boeing Company Year Quarter Dividend Paid Stock Price (Boeing Co.) $150.00 2015 04 $1.09 2015 Q3 $1.09 T-bill Yield (3 months) 0.50% 2015 Q2 $1.09 T-bill Yield (6 months) 0.50% 2015 Q1 $1.09 T-bill Yield (12 months) 0.50% 2014 04 $0.91 Market risk premium 4.50% 2014 Q3 $0.91 2014 Q2 $0.91 $0.91 2013 Q4 $0.73 2013 Q3 $0.73 2013 Q2 $0.73 2013 Q1 $0.73 2012 Q4 $0.49 2012 Q3 $0.49 2012 Q2 $0.49 2012 Q1 $0.49 2011 04 $0.40 2011 Q3 $0.40 2011 Q2 $0.40 2011 01 $0.40 2014 Q1 Table 5: Boeing's bonds trading in the market Time To Maturity Par value Price 30 YEARS $100 $102.90 10 YEARS $100 $104.80 $100 $94.50 Coupon Rate Book Value (million) 4.85% $580.14 3.75% $6,005.12 2.80% $4,596.74 5 YEARS 59. The weighted average cost of debt for Boeing using the book value weights is closest to? Select one: O a. 3.18% O b. 3.61% O c. 3.96% O d. 4.67%
