IV. IwACC (8 points) Key facts and assumptions concerning Costco Company, at December 31, 2017, appear below. Facts and Assumptions Yield to maturity on long-term government bonds Yield to maturity on company long-term bonds Coupon rate on company long-term bonds Historical excess return on common stocks Company equity beta Stock price Number of shares outstanding (millions) Book value of equity (millions) Book value of interest-bearing debt (millions) Tax rate 3.28% 4.62% 5.50% 6.10% 0.80 $75.08 449.5 $11,585 $2.524 35.00% Use the above information to answer the following questions. a. Estimate Costco's cost of equity capital. b. Estimate Costco's weighted-average cost of capital