Kellogg Company manufactures cereal and other convenience food under its many well- known brands such as Kellogg's, Keebler, and Cheez-It. Kellogg has an estimated market beta of 0.50. Assume that the expected risk-free rate is 2.5% and the expected market premium is 5%. Required Estimate Kellogg's cost of equity capital. At the beginning of its 2015 fiscal year, Kellogg had $6.5 billion in total debt. At the end of fiscal year 2015, its total debt had increased to $6.6 billion. Its fiscal 2015 interest expense was $227 million, and its assumed statutory tax rate was 37%. Required a. estimate the company's cost of debt capital Refer to information about Kellogg Company in Ex.1&2. Kellogg's stock closed at $72.27 on December 31, 2015. On that same date, the company had 420,315,589 shares issued, of which 70,291,514 shares were in treasury. Required a. Compute Kellogg's WACC