I just need help with the highlighted section please give details

File Teols View Homework - Chapter 14 To b e the cost of equity for TSLA, to finance yahoo.com and t he ticket wybol TSLA. Follow the links to the following questions What is the most a price and for TSLAY What is the market value of guy, of m et carbon How many shares of stock does TSLA utanding? What is the most recent and can you the dividend discount model in this Wut the beta for TSLA? Now lack to finance yahoo.com and follow the "Bonds uk What is the one month Treasury bill? Using the Pastorical market premium what is the cost of pity for TSLAung CAPM? MINICASE COST OF CAPITAL FOR SWAN MOTORS You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury man acement department SM was founded eight year by Joe Swan Joe found a method to manufacture a cheaper battery that will hold a larger cars in a car powered by the bar Dery a range of 700 miles before requiring a charge. The factured by SM are madszed and carry a price that allows the company to compete with other mainstream at manufacturers. The company is privately owned by Joe and his family, and it had sales of 597 mallion last year SMI primarily sells to customers who buy the cars , though it does have a limited number of company owned dealerstops. The customer select any customization and makes a deposit of 20 percent of the purchase price, Aer the order is taken the car is made to order, typically within 45 days SMS owth o date has come from its profits. When the company had suttient capital, it would expand production Relately lame formal analy sis has been used in its capital budgeting process Joe has just read about capital budgeting techniques and has come to you for help Forters, the company has never attempted to de termine its cost of capital and Joe would like you to perform the Because the com pany is privately owned it is difficult to determine the cost of quay for the company Joe wants you to use the pure play approach to estimate the cost of capital for SMI and he has cho sen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate QUESTIONS You now need to calculate the cost of debt for TSL Cote finna-markets morn- ingstar.com.enter TSLA as the company, and in the yield to maturity for each of TSLA's bonds. What is the weighted average out of debt for TSL wing the book value weights and in the market value weights? Does it make a difference in this case if you use book value weights or market value weight You now have all the necessary information to calculate the weighted average cost of cap ital for TSLA. Calculate this using book abe weights and market value weights as ing ISLA basa 21 percentax rate. Which sumber is more relevant Most publicly traded corporations are required to submit quarterly (10-0) and anal (10-K) reports to the SEC detailing the financial operations of the company over the past quarter or year, respectively. These corporate filings are available on the SEC website at www.crow. Go to the SEC website, follow the "Search for Company Filings link and search for SEC fil- ings made by Tesla Motors (TSLA) Find the most recent 10-Q or 10-K and download the form. Look on the balance sheet to find the book value of debt and the book value of equity 1-2 of 4 Tools View Homework Chapter 14 To estimate the TSLA. Follow the lustod for TSLA? shares of stock de you use the divide finance.yahoo.co. bills? Using the CAPM? MINICASE COST OF CAPITAL FOR SWAN MOTORS You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury man agement department SMI was founded eight years ago by Joe Swan Joe found a method to manufacture a cheaper battery that will hold a larger charge, giving a car powered by the bat tery a range of 700 miles before requiring a charge. The cars manufactured by SMI are midsized and carry a price that allows the company to compete with other mainstream at manufacturers. The company is privately owned by Joe and his family, and it had sales of $97 million last year. SMI primarily sells to customers who buy the cars online, although it does have a limited number of company-owned dealerships. The customer selects any customization and makes a deposit of 20 percent of the purchase price. After the order is taken the car is made to order, typically within 45 days. SMI's prowth to date has come from its profits. When the company had sufficient capital, it would expand production. Relatively little formal analy- sis has been used in its capital budgeting process. Joe has just read about capital budgeting techniques and has come to you for help. For starters, the company has never attempted to de termine its cost of capital, and Joe would like you to perform the analysis. Because the com- pany is privately owned, it is difficult to determine the cost of equity for the company, Joe wants you to use the pure play approach to estimate the cost of capital for SMI, and he has cho sen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate QUESTIONS You now need to ingstar.com, est TSLA's bonds. weights and usi use book value You now have ital for TSLAC ing TSL A has a Most publicly traded corporations are required to submit quarterly (10-0) and annual (10-K) reports to the SEC detailing the financial operations of the company over the past quarter or year, respectively. These corporate filings are available on the SEC website at www.sec.gov. Go to the SEC website, follow the "Search for Company Filings" link, and search for SEC fil- ings made by Tesla Motors (TSLA) Find the most recent 10-Q or 10-K, and download the form. Look on the balance sheet to find the book value of debt and the book value of equity - Chapter 14 % - 0 X To estimate the cost of equity for TSLA, go to finance.yahoo.com and enter the ticker symbol TSLA. Follow the links to answer the following questions: What is the most recent stock price listed for TSLA? What is the market value of equity, or market capitalization? How many shares of stock does TSLA have outstanding? What is the most recent annual dividend? Can you use the dividend discount model in this case? What is the beta for TSLA? Now go back to finance.yahoo.com and follow the "Bonds" link. What is the yield on three month Treasury bills? Using the historical market risk premium what is the cost of equity for TSLA using ? You now need to calculate the cost of debt for TSLA. Go to finra-markets.morn Ingstar.com, enter TSLA as the company, and find the yield to maturity for each of TSLA's bonds. What is the weighted average cost of debt for TSLA using the book value weights and using the market value weights? Does it make a difference in this case if you use book value weights or market value weights? You now have all the necessary information to calculate the weighted average cost of cap. ital for TSLA. Calculate this using book value weights and market value weights, assum. ing TSLA has a 21 percent tax rate. Which number is more relevant? Focus 5:19 PM