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do a quick search for Targets bond issues (SearchSymbol/CUSIP = TGT). A longer-term issues YTM (Yield) could provide an estimate of the firms current cost

do a quick search for Targets bond issues (SearchSymbol/CUSIP = TGT). A longer-term issues YTM (Yield) could provide an estimate of the firms current cost of debt to be used in the WACC calculation. Since you used the 10-year Treasury yield as your risk-free estimate, use the yield on any Target bond that is going to mature in 10 years (i.e., mature in 2032). If there is no bond maturing in 2032, then use the yield on a bond that will mature in 2031. Remember that you need the after-tax cost of debt to calculate a firms WACC; use 31% as the tax rate for Target. What is your estimate of Targets after-tax cost of debt?

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