KLM Distribution, Inc. Facts and assumptions as of Dec. 31, 2018 Company equity beta 2. Stock price $60.00 Number of shares outstanding (millions) 250 Book value of equity (millions) $5,000 Book value of interest-bearing debt $5,000 (millions) Tax rate 21.00% Yield to maturity on long-term 3.00% government bonds Yield to maturity on company long-term 6.00% bonds Coupon rate on company long-term bonds 8.00% Historical excess return on common 7.00% stocks Estimate KLM's weighted average cost of capital by showing your calculation steps. WACC = Wd *Kd (1-t) + We * Ke