Requirement 2 (30 points) You are given the following information for Twitter, Inc (TWTR). Assume the company's tax rate is 35%. Debt: 35,000 bonds outstanding with 8.5% coupon rate, $1,000 par value, 20 years to maturity, selling for 110 percent of par; the bonds make semiannual payments. Common stock: 750,000 shares outstanding Preferred stock: 1,300,000 shares of 5% preferred stock, currently selling for $25 per share. Market: Market return is 7% 1. Determine the stock price and beta for the common stock from the yahoo finance. Is the stock riskier than the market? (5 points) Project 2 2. Determine the risk-free rate of the most recent 6 months treasury bill rate from https://www.treasury.gov/resource-center/data-chart-center/interestrates/pages/textview.aspx?data=yield (5 points) 3. Determine the cost of equity using the CAPM (5 points) 4. Determine the after-tax cost of debt (5 points) 5. Determine the cost of preferred stock ( 5 points) 6. Determine the cost of capital using WACC (5 points) Requirement 2 (30 points) You are given the following information for Twitter, Inc (TWTR). Assume the company's tax rate is 35%. Debt: 35,000 bonds outstanding with 8.5% coupon rate, $1,000 par value, 20 years to maturity, selling for 110 percent of par; the bonds make semiannual payments. Common stock: 750,000 shares outstanding Preferred stock: 1,300,000 shares of 5% preferred stock, currently selling for $25 per share. Market: Market return is 7% 1. Determine the stock price and beta for the common stock from the yahoo finance. Is the stock riskier than the market? (5 points) Project 2 2. Determine the risk-free rate of the most recent 6 months treasury bill rate from https://www.treasury.gov/resource-center/data-chart-center/interestrates/pages/textview.aspx?data=yield (5 points) 3. Determine the cost of equity using the CAPM (5 points) 4. Determine the after-tax cost of debt (5 points) 5. Determine the cost of preferred stock ( 5 points) 6. Determine the cost of capital using WACC (5 points)