Estimate the weighted average cost of capital for Tesla, Inc. (ticker TSLA), using the income statement and balance sheet data for TSLA from www.morningstar.com, and using the historical stock price data and the market capitalization data for TSLA and VFINX from www.finance.yahoo.com. (Do not use balance sheet and income statement from finance.yahoo.com, it has errors in it. Make sure you use year 2018 data from the balance sheet and income statement on Morningstar do not use the TTM column.) Note: From Morningstar, use interest expense net of capitalized interest for interest expense, and total long-term debt for debt. Dont worry about pretax income and provision for income tax being negative, use the numbers in the same way you normally would. To get the market value of equity use market cap from the summary page on Yahoo Finance. Trine University, Spring 2020, Dr. Kolar Page 3 1. Create a sheet in your Excel file (Q5a) that estimates the weighted average cost of capital, listing the necessary inputs at the top of your sheet. Obtain any necessary data from the sources listed above. Link to other sheets in your file that will calculate Teslas cost of equity and beta. 2. Create a second sheet (Q5b), where you use the capital asset pricing model to estimate Boeings cost of equity, assuming 3.5% risk-free rate and 5.5% market risk premium. Link to a separate sheet with beta estimation. 3. Create a third sheet (Q5c), where you estimate Boeings beta, using historical prices with MONTHLY frequency for the following dates: starting date 01/01/2017, and ending date 01/01/2020. Use finance.yahoo.com to download the prices for TSLA and VFINX (make sure you use the ADJUSTED CLOSE price). Use the SLOPE function to estimate beta. Insert a scatter chart that shows the trendline from regressing returns of TSLA on the VFINX returns, and displays the estimated equation.

Kindly list the excel formula used to solve the problem.