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Help please! How do I calculate for the value of debt and weight of debt? thanks Calculate the Weighted Average Cost of Capital (WACC) for

Help please! How do I calculate for the value of debt and weight of debt? thanks

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Calculate the Weighted Average Cost of Capital (WACC) for Mccormick and Company using the formula WACC = WD RD (1-T) + Ws rS and WD = Value of debt / Value of debt plus value of equity; Ws = Value of Stock Equity / Value of Debt Plus Value of Equity. For ease, the CFO says to use book value of Debt and the market Value of Equity. On February 26, 2019 the market Value of Equity (or Market Cap) in Yahoo was $17.5 billion. Use the 2018 10-K Financial Statements filed January 25, 2019 and look on the Balance sheet to see the total of Short term borrowings, Current portion of long term debt and Long term debt. Use 4% for the cost of debt. Use 27.5% as the tax rate - a combination of federal and state income tax. Q5 WACC = WD RD (1-T) + Ws rs where : WD - Wd = weight of debt/ Value of debt / Value of debt plus value of equity RD 4% Ws = weight of common stocks T 27.50% Wp = weight of preferred stocks WS $17.5 billion Wd + Ws + Wp = 1 RS rD = cost of debt rs = cost of common stocks Short-term borrowings 305.5 rP = cost of preferred stocks Long-term debt borrowing 25.9 T = tax rate Outstanding shares 132,148,261 current price 164.98 Market value of equity 21,801,820, 100 Market value of debt

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