Compute the cost of capital for Netflix. Use the Weighted Average Cost of Capital formula.

https://finance.yahoo.com/quote/NFLX?p=NFLX&.tsrc=fin-srch-v1

You will need: Capital weights: Market value of all of the common stock (Market Cap on Quote Summary page works) Market value of preferred stock (there may not be any) Market value of the debt - You may have to use book value of debt from the balance sheet (note that most numbers on balance sheets are in $thousands, so you need to add 000 to the end of the numbers) Tax Rate: Use the taxable income from the firm and the marginal tax rate from this table.

Taxable Income ($) Tax Rate 0 to 50,000 15% 50,000 to 75,000 $7,500 + 25% Of the amount over 50,000 75,000 to 100,000 $13,750 + 34% Of the amount over 75,000 100,000 to 335,000 $22,250 + 39% Of the amount over 100,000 335,000 to 10,000,000 $113,900 + 34% Of the amount over 335,000 10,000,000 to 15,000,000 $3,400,000 + 35% Of the amount over 10,000,000 15,000,000 to 18,333,333 $5,150,000 + 38% Of the amount over 15,000,000 18,333,333 and up 35%