Case Narrative: The financial data for Kraft Heinz Company (KHC) is provided below. This information is to be used to answer the mini-case questions.

Equity Information: Kraft Heinz Company (SourceYahoo! Finance)

2018 Dividend Data

Additional Information for Kraft Heinz Company:

• Annual dividend for the COMMON STOCKis expected to grow at a rate of 2%
• Krafts PREFERRED STOCKcurrently sells at a price of $25 per share. It pays a dividend of $1.50 (which is NOT expected to grow)

Bond Information: Kraft Heinz Company

Additional Information for Kraft Heinz Bond Issue:

• The bond has 10 years remaining until maturity

1. What is the market capitalization for the Kraft Heinz Company? ____________________________________________________Chapter 4

2. What is the cost (required rate of return)of Krafts preferred stock? ______________________________________________________Chapter 7

3. What is the cost (required rate of return)of Krafts common stock? _______________________________________________________Chapter 7

4. What is the cost (yield to maturity %)for Krafts bonds? _______________________________________________________Chapter 6

What caused Krafts current bond price to increase in price from the original issuance price? _______________________________________________

The Kraft Heinz Company (KHC NasdaqGS -Nas daqGS Real Time Price. Curren 32.53 +0.07 (+0.22%) At close: May 17 4:00PM EDT Summary Conversations St Chart Previous Close 32.46 Market Beta ( Open 32.41 Monthl PE Ra Bid 32.53 x 800 EPS ( Ask 32.75 x 4000 Earnin Day's Range 32.21-32.87 Forwar 52 Week Range 31.53-64.99 & Yielc Nov 15, 2018 0.625 Dividend 0.625 Dividend Aug 16, 2018 May 17, 2018 0.625 Dividend Mar 08, 2018 0.625 Dividend Share Statistics Avg Vol (3 month) 12.67M Avg Vol (10 day) 3 8.31M Shares Outstanding 1.22B MARKETSINSIDER search WATCHLIST CRYPTOCURRENCIES MARKETS STOCKS INDICES COMMODITIES CURRENCIES ETFS NEWS US42307TAG31 + ADD KRAFT HEINZ FOODS 2032 SHARE 113.63 1.26 (1.12%) USD 5/15/2019 BER Day Low Day High 52 Week Low 52 Week High Prev. Close 113.63 Open 113.63 113.63 109.07 119.27 113.63 113 63 11363 INTRADAY 1W 3 M 1 Y 3Y 5Y MAX 120- 118- -0% MARKETSINSIDER search WATCH LIST CURRENCIES MARKETS STOCKS INDICES COMMODITIES CRYPTOCURRENCIES ETFS NEWS COUPON Coupon 6.750% Denomination 1000 The Kraft Heinz Company (KHC NasdaqGS -Nas daqGS Real Time Price. Curren 32.53 +0.07 (+0.22%) At close: May 17 4:00PM EDT Summary Conversations St Chart Previous Close 32.46 Market Beta ( Open 32.41 Monthl PE Ra Bid 32.53 x 800 EPS ( Ask 32.75 x 4000 Earnin Day's Range 32.21-32.87 Forwar 52 Week Range 31.53-64.99 & Yielc Nov 15, 2018 0.625 Dividend 0.625 Dividend Aug 16, 2018 May 17, 2018 0.625 Dividend Mar 08, 2018 0.625 Dividend Share Statistics Avg Vol (3 month) 12.67M Avg Vol (10 day) 3 8.31M Shares Outstanding 1.22B MARKETSINSIDER search WATCHLIST CRYPTOCURRENCIES MARKETS STOCKS INDICES COMMODITIES CURRENCIES ETFS NEWS US42307TAG31 + ADD KRAFT HEINZ FOODS 2032 SHARE 113.63 1.26 (1.12%) USD 5/15/2019 BER Day Low Day High 52 Week Low 52 Week High Prev. Close 113.63 Open 113.63 113.63 109.07 119.27 113.63 113 63 11363 INTRADAY 1W 3 M 1 Y 3Y 5Y MAX 120- 118- -0% MARKETSINSIDER search WATCH LIST CURRENCIES MARKETS STOCKS INDICES COMMODITIES CRYPTOCURRENCIES ETFS NEWS COUPON Coupon 6.750% Denomination 1000