find b) compute Kellogg's WACC

Book Pro Qurbon 3 Partially correct Mark 1.00 out of 2.00 Hoc question Estimating the weighted Average Cost of Capital Kelloge Company manufactures cereal and other convenience food under its many well-known brands such as Kellogg's, Keeblers, and Cheez-ite. The company with over $13.5 billion in annual sales worldwide, partial finances its operation through the issuance of debt. At the beginning of its 2015 fiscal year, it had 56.5 billion in total debt. At the end of fiscal year 2015. its total debt had increased to $6.6 billion. Its fiscal 2015 interest expense was $227 million, and its assumed statutory tax rate was 37%. Kellogg has an estimated market beta of 0.40. Assume that the expected risk-free rate is 2.5% and the expected market premium is SM Kellogg's stock closed at $50.12 on December 31, 2015. On that same date, the company had 420,315,589 shares issued, of which 70,291 14 shares were in treasury a. What is Kellogg's total market capitalization as of December 31, 2015? Enter answer in billions, rounding to one decimal place billion 17.5 b. Compute Kellogg's WACC Use your rounded answer above for computation Round answer to one decimal place (ex: 0.0245 = 25W), 0 X Check Partitore Man for the submission MacBook Air