Please follow and label each step in the construction process of the project. Remember that you should be examining a US Headquartered public-traded for-profit corporation. Please show all calculations and work in Excel.

• • Step 1. Determine the firm?s rd from the 10-K report in the Note to the Long-term Debt, where rd = ?(wdi*rdi), where wdi = the weight of debt for each bond and rdi is the coupon rate for each bond. Please regard equation 6.6 on page 247 for a review of the methodology.2. Step 2. Construct the capital structure of the firm to find the wd and we components of the WACC. Note that the dollar amount of long-term debt and the dollar amount of total equity should be utilized. Preferred equity dollar amount should be included in the calculation if the firm still has preferred equity outstanding.3. Step 3. Find the firm?s beta.4. Step 4. Determine the firm?s tax rate from the 10-K information. Please make sure to include the page number where you determined the firm?s tax rate in the 10-K report from the previous fiscal year.5. Step 5. Find either the 1-year Treasury bill rate or the 10-year Treasury note rate at the close of the firm?s fiscal year. If the risk-free rate is provided by the firm in the 10-K, please utilize this percentage. Full credit will not be earned if the 4% rfr in the givens in the instructions is utilized. 6. Step 6. Find an appropriate rm percentage for the previous fiscal year. Full credit will not be earned if the 8% rpm given in the instructions is utilized. 7. Step 7. Construct the current CAPM rs for the firm. Please review page 258, equation 6.14.8. Step 8. Construct the current WACC for the firm. Please review page 375, equation 9.2. Note that you do not have to utilize the short-term debt portion in the equation.9. Step 9. Calculate the beta unlevered. Please review page 611, equation 15-10.10. Step 10. Calculate the new beta levered at plus or minus 5% or 10% intervals of wd in the firm?s capital structure. Please review page 611, equation 15.9a.11. Step 11. Determine the new rs CAPMs at each differing capital structure utilizing the new levered betas.12. Step 12. Make sure to adjust the rd by plus or minus the percentage of wd?s change, so that a leverage increase of 5% should result in a new rd of (rd*1.05) and a leverage decrease of 5% should result in a new rd of (rd*0.95). Please refer to page 610 figure 15-5.13. Step 13. Please review the week-10 announcement that includes information on problems 15-9, 15-10, and 15-11 on pages 622 and 623.14. Step 14. Replicate rows 1 to 6 in figure 15-5 to determine the capital structure where WACC is minimized.15. Step 15. Graph the WACCs at the different capital structures of the firm as stated in the instructions.

Please follow and label each step in the construction process of the project. Remember that you should be examining a US Headquartered public-traded forprofit corporation. Please show all calculations and work in Excel. Step 1. Determine the firm's rd from the 10-K report in the Note to the Long-term Debt, where rd = (wdi*rdi), where wdi = the weight of debt for each bond and rdi is the coupon rate for each bond. Please regard equation 6.6 on page 247 for a review of the methodology. 2. Step 2. Construct the capital structure of the firm to find the wd and we components of the WACC. Note that the dollar amount of long-term debt and the dollar amount of total equity should be utilized. Preferred equity dollar amount should be included in the calculation if the firm still has preferred equity outstanding. 3. Step 3. Find the firm's beta. 4. Determine the firm's tax rate from the 10-K information. Please make sure to include the page number where you determined the firm's tax rate in the 10-K report from the previous fiscal year. 5. Step 5. Find either the 1-year Treasury bill rate or the 10-year Treasury note rate at the close of the firm's fiscal year. If the risk-free rate is provided by the firm in the 10-K, please utilize this percentage. Full credit will not be earned if the 4% rfr in the givens in the instructions is utilized. 6. Step 6. Find an appropriate rm percentage for the previous fiscal year. Full credit will not be earned if the 8% rpm given in the instructions is utilized. 7. Step 4. Step 7. Construct the current CAPM rs for the firm. Please review page 258, equation 6.14. 8. 9. Step 8. Construct the current WACC for the firm. Please review page 375, equation 9.2. Note that you do not have to utilize the short-term debt portion in the equation. Step 9. Calculate the beta unlevered. Please review page 611, equation 15-10. 10. Step 10. Calculate the new beta levered at plus or minus 5% or 10% intervals of wd in the firm's capital structure. Please review page 611, equation 15.9a. 11. Step 11. Determine the new rs CAPMs at each differing capital structure utilizing the new levered betas. 12. Step 12. Make sure to adjust the rd by plus or minus the percentage of wd's change, so that a leverage increase of 5% should result in a new rd of (rd*1.05) and a leverage decrease of 5% should result in a new rd of (rd*0.95). Please refer to page 610 figure 15-5. 13. Step 13. Please review the week-10 announcement that includes information on problems 15-9, 15-10, and 15-11 on pages 622 and 623. 14. Step 14. Replicate rows 1 to 6 in figure 15-5 to determine the capital structure where WACC is minimized. 15. Step 15. Graph the WACCs at the different capital structures of the firm as stated in the instructions