Download annual reports for the last year and examine its capital structure and lease obligations. Choose a company that pays dividends, has debt outstanding, and is not in financial services industry. Please do not choose companies we covered in class.

Answer the following questions:

1. Value outstanding leases not reported on the books in the most recent year.

2. Estimate the book value of debt, market value of equity, tax rate paid by the company. Market capitalization (MCAP) should be estimated using most recent market data, book value of debt and tax rate can be obtained from annual report. Note that tax rate may be reported, or you may have to estimate it.

3. Indicate debt/equity ratio and adjusted debt/equity ratio

4.Estimate weighted-average cost of capital (WACC) adjusted for lease financing for the most recent fiscal year. Report weighted-average cost of capital unadjusted for lease financing for the same year. You can use equity risk premium of 6% and risk-free rate of 2%.

Please provide the balance sheet, income statement and portion of the annual report that describes lease obligations from annual report.

I will need to include in my deliverable a print-out of the balance sheet, income statement and portion of the annual report that describes lease obligations from annual report.