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My Company is CVS Health Corp. I need to estimate CVS's approximate WACC; use the most recent year's debt ratio to find the weights of

My Company is CVS Health Corp.

I need to estimate CVS's approximate WACC; use the most recent year's debt ratio to find the weights of debt and equity. If your company issues preferred stock, for simplicity's sake, ignore it. The cost of debt will be the approximate YTM calculated in Week 5. Use CAPM to calculate your company's required rate of return on stock. The beta was determined in Week 6; use the current 10-year Treasury bonds' YTM as the risk-free rate. Using a reliable source, research the current market's expected rate of return (for example, the S&P 500). Be sure to mention all reference sources.

I have included below the calculations from Week#5. Please help.

Week#5 Assignment is as Follows:

Based on the bonds' current YTM for CVS Health Corp., calculate the average current yield.

Name

Amount

Price

YTM%

ACY%

Cvs Health 5.125%

3,500.00

115.50

5.125

3.3

Cvs Health 3.875%

2,828.10

105.00

3.875

3.713

Cvs Health 2.8%

2,750.00

102.20

2.800

3.772

Cvs Health 1.9%

2,250.00

100.20

1.900

4.453

Cvs Health 2.125%

1,750.00

99.40

2.125

5.68

Cvs Health 2.875%

1,750.00

97.60

2.875

5.577

Cvs Health 3.5%

1,500.00

104.60

3.500

6.973

Cvs Health 4%

1,250.00

107.40

4.000

8.592

Cvs Caremark Corporation 2.75%

1,250.00

100.80

2.750

8.064

Cvs Caremark Corporation 2.25%

1,250.00

100.60

2.250

8.048

Morningstarcom.(2018).Morningstarcom.Retrieved29 May 2018,from http://www.morningstar.com/stocks/xnys/cvs/quote.htm1

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