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Master it! Solution NOTE: The following calculations were done using the 10-Q dated June 7, 2019 and using market information available in July 20

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Master it! Solution NOTE: The following calculations were done using the 10-Q dated June 7, 2019 and using market information available in July 20 significantly. Since AutoZone does not pay a dividend, we used the CAPM estimate for the cost of equity. Hyperlinks for stock information and risk-free rate a. Ticker symbol: Yahoo! Finance stock quote Yahoo! Finance key statistics Yahoo! Finance analysts estimates Yahoo! Finance bond center Stock quote link Stock price: Key statistics link Beta: Shares outstanding: Bond center link: Risk-free rate: Market risk premium: Market value of equity: Cost of equity -S $ AZO USE THESE LINKS TO FILL IN THE BLUE BOXES BELOW Dividend discount model: CAPM: Cost of equity: Hyperlinks for bond quotes and SEC EDGAR web sites b. FINRA bond quote SEC EDGAR database Maturity YTM 0.00% #DIV/O! FILL THIS CHART IN USING THESE HYPERLINKS FOR BOND QUOTES. ANSWERS WILL APPEAR | Quoted Price Market Value Book Value Market Value Weight Market Values Total market value = sssssssssssss $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! $ Cost of debt = #DIV/O! Tax rate: 21% Aftertax cost of debt: #DIV/O! Cost of equity: #DIV/O! Market value of equity: $ Aftertax cost of debt: #DIV/O! Market value of debt: $ THESE WILL POPULATE C. Weight of debt: #DIV/O! Weight of equity: #DIV/O! WACC: #DIV/O!

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