Gather the data to estimate General Electric's (ticker symbol = GE) WACC using market value weights. In computing the cost of equity, use all three methods (Constant Growth Model, CAPM, and Bond-Yield-Plus-Risk-Premium).

Justify your choice of which method (or average of methods) is most appropriate to use in your estimate of WACC for GE. Prepare a brief report explaining and documenting all of your calculations. Please cite and attach all sources of information that are used in your calculations. Information Sources Needed: You can use any financial internet website to pull the relevant data needed.

Listed below are some examples.

a) finance.yahoo.com - needed for stock price, analyst's growth estimates, etc.

b) finance.yahoo.com/bonds for Treasury security yields (Risk-free rate)

c) Most recently issued GE Corporate Bond: i. 4.5% semi-annual coupon, matures March 2044, 12/31/2018 price quote=97.696 ($976.96)

Data to gather: Market value of equity (market cap), Market value of LT debt, Stock price, Recent or expected dividend, Dividend growth rate, beta, risk-free rate, market risk premium, tax rate

Calculations:

1. r_d= YTM
2. r_s calculation for each of the three methods and justification for final estimate
3. Dividend growth rate (unless you can justify a specific growth rate)
4. Weights of long-term debt and common equity (capital structure)
5. WACC