Gilead	S&P500
Date	Adj. Close	Adj. Close
10/1/12	31.74	1412.16
11/1/12	35.43	1416.18
12/1/12	34.70	1426.19
1/1/13	37.28	1498.11
2/1/13	40.37	1514.68
3/1/13	46.24	1569.19
4/1/13	47.85	1597.57
5/1/13	51.48	1630.74
6/1/13	48.45	1606.28
7/1/13	58.02	1685.73
8/1/13	56.95	1632.97
9/1/13	59.41	1681.55
10/1/13	67.26	1756.54
11/1/13	70.69	1805.81
12/1/13	70.96	1848.36
1/1/14	76.21	1782.59
2/1/14	78.23	1859.45
3/1/14	66.96	1872.34
4/1/14	74.17	1883.95
5/1/14	76.74	1923.57
6/1/14	78.34	1960.23
7/1/14	86.51	1930.67
8/1/14	101.64	2003.37
9/1/14	100.59	1972.29
10/1/14	105.83	2018.05
11/1/14	94.80	2067.56
12/1/14	89.07	2058.90
1/1/15	99.06	1994.99
2/1/15	97.83	2104.50
3/1/15	92.73	2067.89
4/1/15	94.98	2085.51
5/1/15	106.09	2107.39
6/1/15	110.63	2063.11
7/1/15	111.77	2103.84
8/1/15	99.64	1972.18
9/1/15	93.12	1920.03
10/1/15	102.95	2079.36
11/1/15	100.88	2080.41
12/1/15	96.34	2043.94
1/1/16	79.36	1940.24
2/1/16	83.43	1932.23
3/1/16	87.84	2059.74
4/1/16	84.75	2065.30
5/1/16	83.65	2096.95
6/1/16	80.15	2098.86
7/1/16	76.79	2173.60
8/1/16	75.73	2170.95
9/1/16	76.45	2168.27
10/1/16	71.57	2126.15
11/1/16	71.64	2198.81
12/1/16	69.61	2238.83
1/1/17	70.88	2278.87
2/1/17	68.95	2363.64
3/1/17	66.45	2362.72
4/1/17	67.58	2384.20
5/1/17	63.97	2411.80
6/1/17	69.78	2423.41
7/1/17	75.62	2470.30
8/1/17	83.19	2471.65
9/1/17	80.52	2519.36

Q1. You work in a Gilead Science Incs corporate finance and treasury department and have just been assigned to the team estimating your companys WACC. You must estimate this WACC as of 11/9/17. Please also use Gilead Science Information on the appendix.

1. Estimate cost of equity of Gilead Science Inc (market risk premium = 5%)

2. Using Gilead Science Bond information on appendix, find pre-tax cost of debt.

3. What is the market value of Equity of Gilead Science Inc? (Number of shares outstanding = 1,307,055,900 shares)

4. Find the cost of capital (WACC) for Gilead Science Inc (Effective Tax Rate=30%)