FCFF Model Using Tesla financial reports, we are forecasting the stock price at the beginning of year 2017. [All the dollar values in thousands] Step 1. Define Discount Rate. a. Find the cost of equity using information in Excel "Stock Return". a.1. Fill in your answers in excel "Cost of Capital". [Use the 10-year treasury rate in the CAPM. Assume a market risk premium of 5.5%] a.2. Based on the regression, do you think this is a good estimate for the firm's cost of equity? Explain your answer. b. Find the cost of debt using the information in Excel "Cost of Capital" c. Find the cost of capital (WACC) using information in Excel "Cost of Capital". [Note: We shall adjust the market value of debt by the operating lease. Thus please solve step 2, part a and then solve this part]