Given information for Volkswagen: Cost of debt Volkswagen (from the footnotes to the financial statements) 1.83% Beta for Volkswagen Motors (from Yahoo or other financial sources) 1.27 Normalized risk free rate of return in the market (observing the 10 rate on government issued securities)3.00% Equity risk premium (from historical studies of the market) 5.00% Market value of debt (use book or amount disclosed in the footnotes if different) $ 248,878 Number of common shares outstanding 5,744 Market price of the common stock $ 13.49 Market value of equity (number of shares times the stock price on balance sheet date)