Calculate the Weighted Average Cost of Capital (WACC) percentage for Walt Disney.

• Estimate the approximate yield to maturity of company debt and the after-tax cost of debt (look atwww.Morningstar.comfor the YTM).
• Determine the approximate cost (required rate of return) of equity using the Capital Asset Pricing Model.
• Determine the market values of the company debt, equity, and assets (you may assume the market value of company debt is equal to the book value of total liabilities).
• Calculate the weighted average cost of capital.Show all of your calculations.
• Explain the significance of the company's WACC to its management.