Key facts and assumptions concerning Costco Company, at December 31, 2011, appear below. Use the information to answer the following questions.

Facts and Assumptions Yi eld to maturity on longt erm goyernment bonds 3 28% Yi eld to maturity on company longterm bonds. 4 152% Coupon rate on eompany long-t erm bonds. 5.50% Hi Storieal exo e55 return on common StGCkS 5.19% Company equity beta [LSD Stookpriee STSJZIS Number of abarea o1:t5ta.nd.ing{milliona} 449.5 Bookyalue ofequity{mi11iona} 811:535 Book yalue ofintereat-bearing debt {milliona} $1524 Tax rate 35 .DD%