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 (Source Yahoo! Finance)

43.19 -0.42 (-0.97%) At close: April 28 4:00 PM EDT

Previous Close 43.61 Open 43.41 Bid 43.67 x 1000 Ask 43.68 x 1400 Days Range 43.36 43.70 52 Week Range 32.78 44.95

2021 Dividend Data

Nov 15, 2021 .40 dividend Aug 16, 2021 .40 dividend May 17, 2021 .40 dividend Feb 08, 2021 .40 dividend

Share Statistics:

Ave Volume 6.96 M

Shares Outstanding: 1.225 B

Additional Information for Kraft Heinz Company:

Annual dividend for the COMMON STOCK is expected to grow at a rate of 3.5% Krafts PREFERRED STOCK currently sells at a price of $50 per share. It pays a dividend of $2.00 (which is NOT expected to grow)

Bond Information: Kraft Heinz Company

Kraft Heinz Foods 2032

V 112.37 USD 1.26 (1.12%)

Coupon 6.75%

Demonization 1000

Additional Information for Kraft Heinz Bond Issue: The bond has 12 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

5. What caused Krafts current bond price to increase in price from the original issuance price? _______________________________________________Chapter 6

Instructions: Answer all questions and submit assignment in blackboard by the due date. Each question is 6 points for a total of 30 points. Partial credit given if work is shown. 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 (source Yahoo! Finance) 43.19 0.42(0.97%) At close: April 28 4:00 PM EDT Additional Information for Kraft Heinz Company: - Annual dividend for the COMMON STOCK is expected to grow at a rate of 3.5% - Kraft's PREFERRED STOCK currently sells at a price of $50 per share. It pays a dividend of $2.00 (which is NOT expected to grow) Bond Information: Kraft Heinz Company Kraft Heinz Foods 2032 Additional Information for Kraft Heinz Bond Issue: - The bond has 12 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 Kraft's preferred stock? Chapter 7 3. What is the cost (required rate of return) of Kraft's common stock? Chapter 7 4. What is the cost (yield to maturity \%) for Kraft's bonds? Chapter 6 5. What caused Kraft's current bond price to increase in price from the original issuance price? Chapter 6