Bob's Bike Shop NASDAQ (BUDA) YEAR 2010 Cash $3,000 Accounts Receivable $27,000 Current Market Data Yrs. Remaining Inventory $15,000 Prime Rate n. a. Total Current Assets $45,000 U.S. Treas. 10 Gross Fixed Assets $66,000 Bond YTM 10 Bond i-rate less: Accumulated Depreciation $26,000 BUDA Perpetual BUDA Mkt Cap Net Fixed Assets $40,000 BUDA Pfd. Perpetual Par Value Total Assets $85,000 Dividend Beta: Mkt. Price Notes Payable $14,000 ValuLink Mkt. Yield Accounts Payable $9,000 Bloomberk Accruals & Other Current Liabilities $4,000 Total Current Liabilities $27,000 U. S. Equities: Long-Term Debt (9.80% coupon) Due 2020 $20,000 CAPM Rs = Risk Free + (MR Prem. x Beta) Preferred Stock (at par) (9% Div.) $3,000 Common Stock $1,500 Retained Earnings $33,500 Total Liabilities & Net Worth $85,000 WACC = Component A-T Price Weight Product Tax Rate: Notes Pay. L-T Debt Pref. Stk. Common Stk. = WACC