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Chapter 12 The Cost of Capital for Swan Motors, Inc. Input area: Directions: Work the Cost of Capital for Swan Motors case on page 389

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Chapter 12 The Cost of Capital for Swan Motors, Inc. Input area: Directions: Work the Cost of Capital for Swan Motors case on page 389 of the text. This is the closing case for Chapter 12. Output area: 2) RE from CAPM 3) Company Beta Ford GM Honda Toyota Nissan Industry Average RE with industry beta 4) Bookvalue(millions)PercentQuotedMarketvaluePercentYieldtoBookMarketoftotalprice(millions)oftotalMaturityvaluesvalues 2019 Notes 2021 Notes Total 5) Book value of equity billion Market value of equity billion Book value of company billion Market value of company billion WACC using book value WACC using market value

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