For this question pertaining to estimating cost of debt captial, please let me know where I went wrong with my answers. Please solve the problem in its entirity and show your steps to your calculations.

QUESTION 3corect 0.73 points out of 1.00 Fag question Estimating Cost of Debt Capita Assume the December 31, 2010, partial financial statements taken from the annual report for AT&T (T) follow Consolidated Statements of Income Dollars in millions 2010 Operating revenues Wireless service Voice Data Directory Other Total operating revenues Operating expenses Cost of services and sales Selling, general and administrative Depreciation and amortization Total operating expenses Operating income Other income (expense) Interest expense Equity in net income of affiliates Other income, net Total other income (expense) Income from continuing operations before income taxes Income tax (benefit) expense 53,510 28,315 27.479 3,935 11,041 124,280 52,263 33,065 19,379 104,707 19,573 (3,494) 762 897 (1,835) 17,738 (1,512)