Please solve for the highlighted questions and show work along the way, this is completed by hand so I would prefer if it is written out (not on excel).

. VALUE and Cost of Debt Now click on the Financials tab and go to the Balance Sheet. Record and sum the 2018- 09 values for both for the Short-term debt and Long-term debt items. Sum of these two items is equal to Book Value of Debt. We will assume that book value of debt is equal to market value of debt. Short-term debt: 3,790 Long-term debt: 17,084 BV of Debt: 20,874 Now click on the Bonds tab and click on the bond symbol DIS.GC. (Could be located in page 2 or 3) Record the YTM (ie. Last Trade Yield) of this bond issue. This is your pre- tax cost of debt. Use 20% as the tax rate. YTM: 1.909 Tax Rate: 20% VALUE and Cost of Equity . To find the market value of equity go to the Quote tab and record the value of Mkt Cap. This is your Market Value of Equity. MV of Equity: 278.31 billion To calculate the cost of equity, use both the DCF and CAPM methods. Take the average of both methods. That is your cost of equity. Under the Quote tab: Record the value of Div Yield. That is D1/P, Assume that g is equal to 3Y Ret and hence record that value. Dividend Yield: 0 o g= 14.85 O Under the Quote tab: the provided value of Beta. In the FINRA website go to BONDs and record the value of 30Yr Treasury Yield. That is your risk-free rate (rf). Assume the Market Risk Premium is 5%. Beta: 1.17 Risk-Free Rate: 1.69% Now calculate the WACC and report your results