-Can you calculate the following data for Visa Inc. and American Express Company.

Cost of Equity (Common Stock)

• Beta from Regression and two Betas from analysts
• Beta Chosen for CAPM and why
• Capital Assets Pricing Model (include how determined R_F and[ R_M or (R_M R_F)]
• Discounted Cash Flow (DCF) (only if dividends include how determined)
• Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how to determine risk premium)
• Cost of Preferred Stock
• Cost of Debt (make sure to include a table that lists all bond issues with weighted average cost of debt)
• Market Value of Debt (will have calculated above, but will need to add any long-term leases from the balance sheet to get the total market value of debt)
• Market Value of Equity
• Market Value of Preferred Stock
• Value of Firm
• Firms Tax Rate (explain how determined)
• Weight for Equity
• Weight for Preferred Stock
• Weight for Debt
• WACC (Weighted Average Cost of Capital) Equations to use for the calculus: HELPFUL EQUATIONS

WACC = [(w_E) x R_E] + [(w_PF) x R_PF] + [(w_D) x R_D x (1- T_C)]

Where:

Weights

(w_E) = % of common equity in capital structure

(w_PF) = % of preferred stock in capital structure

(w_D) = % of debt in capital structure

Component costs

R_E = firms cost of equity

R_PF = firms cost of preferred stock

R_D = firms cost of debt

T_C = firms corporate tax rate