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Chapter 14 The Cost of Capital for Swan Motors, Inc. Input area: Maturity Year 2019 2021 Book value Quoted price $ 835 98.200 $ 1,200

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Chapter 14 The Cost of Capital for Swan Motors, Inc. Input area: Maturity Year 2019 2021 Book value Quoted price $ 835 98.200 $ 1,200 94.080 YTM 1.121% 2.789% BV of debt (balance sheet) $ BV per share $ Stock price $ Market capitalization (billions) $ Shares outstanding (millions) Most recent dividend $ Beta 3-month Treasury bill rate Market risk premium Tax rate 2,035 million 17.890 254.61 40.96 160.87 1.190 0.46% 7.00% 21% Output area: R from CAPM ?? Maturity Year 2019 2021 Book value (millions) ?? ?? ?? Percent of total ?? ?? ?? Market value Percent Yield to Book Market (millions) of total Maturity values values ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Total Weights ?? Book value of debt Book value of equity Book value of company ?? million million million ?? ?? ?? ?? Market value of debt Market value of equity Market value of company ?? ?? ?? million million million ?? WACC using book value ?? ih WACC using market value

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