Now calculate the following using the publicly-available information below.
Cost of equity
Cost of debt (pre-tax)
Weight of equity
Weight of debt
WACC
**Par value of bond = 1000**
MRK common stock beta:			0.6
YTM on 10-year US Treasury bond:			3.12%
Average annual return on Vanguard Total Market Fund:			10.55%
Current MRK price per common share:			$73.81
Number of MRK common shares outstanding (in millions):			2,678
Corporate tax rate:			21%
The company has the following long-term debt outstanding. (Assume this is the only debt the firm has.)
Bond issue	Coupon Rate	Book Value (in millions $)	Market Price Quote (per bond)	YTM
2.75% notes due 2025	2.750%	2,488	94.8400	3.7100%
3.70% notes due 2045	3.700%	1,973	90.9900	4.3200%
2.80% notes due 2023	2.800%	1,744	97.1700	3.5100%
5.00% notes due 2019	5.000%	1,260	101.1400	3.2800%
4.15% notes due 2043	4.150%	1,237	97.6400	4.3500%
1.85% notes due 2020	1.850%	1,232	98.5000	3.0900%
2.35% notes due 2022	2.350%	1,220	96.9000	3.3900%
1.125% euro-denominated notes due 2021	1.125%	1,185	103.0500	0.9000%
1.875% euro-denominated notes due 2026	1.875%	1,178	106.6100	1.0100%
3.875% notes due 2021	3.875%	1,140	101.1200	3.3700%
2.40% notes due 2022	2.400%	993	96.2900	3.4600%
6.50% notes due 2033	6.500%	729	138.4460	4.2735%
0.50% euro-denominated notes due 2024	0.500%	591	98.8200	0.7000%
1.375% euro-denominated notes due 2036	1.375%	587	94.2000	1.7600%
2.50% euro-denominated notes due 2034	2.500%	585	111.6900	1.6700%
3.60% notes due 2042	3.600%	489	99.2500	3.6327%
6.55% notes due 2037	6.550%	415	141.6800	4.3373%
5.75% notes due 2036	5.750%	338	116.5775	4.7940%
5.95% debentures due 2028	5.950%	306	121.7100	4.3910%
5.85% notes due 2039	5.850%	270	119.4500	4.7831%
6.40% debentures due 2028	6.400%	250	113.5100	5.3414%
6.30% debentures due 2026	6.300%	135	114.1305	5.0833%