Do the following analysis for Boeing Corp. It includes both a WACC and a capital budgeting decision. 1. Using the debt securities, find the average and highest borrowing cost (ra) for Boeing. 2. Use the CAPM to estimate the cost of equity. Use rf = 5.00% & (rm-rf) = 5.5%, & Beta from Capital IQ. 3. Since Boeing has suspended dividends, we won't be using the constant growth dividend model for rs. Instead, you will need to use the non-constant model. See #4. 4. For the non-constant model, assume the dividend amount is 0 for the next 5 years, then assume they resume with a $1.00 dividend in year 6 and growth of 5% per year after that. 5. Use the highest bond yield + premium method to estimate the cost of equity. 6. Calculate the average cost of equity using all rs estimates excluding the non-constant rs (#4). 7. Estimated the capital structure. D/V and E/V and 15% tax rate. 8. Estimate weighted average cost of capital. = WACC D/V (rd)(1-T) + E/V(re)