Right now it is the end of October 2023. You are given some information about Suncor Energy, sourced from FactSet, including the company's snapshot and screenshot of its detailed debt information. You are also asked to go to Yahoo! Finance Canada and download weekly stock prices (Suncor Energy Inc. (SU.TO) Stock Historical Prices \& Data - Yahoo Finance), over the period of 01/July/2018 - 30/June/2023 inclusive, for both Suncor Energy and for the S\&P/TSX Composite Index (symbol: ^GSPTSE). You can use the "Adj. Close" prices, which are stock prices adjusted for dividends and stock splits. [Question 2.a] Calculate Suncor's historical weekly stock returns, using stock prices you have downloaded from Yahoo! Finance Canada. Then, based on these firm-specific weekly returns as well as weekly returns of the stock market index, calculate (a) the company's annualized historical return and the associated return standard deviation, (b) stock BETA coefficient for the company, and (c) the company's cost of equity using the CAPM model, assuming a risk-free rate of 5.0% and a market rate of return of 10.0%. Discuss any potential problems in these calculations. [Question 2.b] Using Suncor's detailed debt DCS information, an Excel file provided on MOODLE, calculate the company's weighted average cost of long-term debt (hint: Chapter 14 Loblaw example with multiple bonds and/or loans). Conduct your calculation for your assigned company, based on these assumptions: (a) for a long-term loan, its percentage cost is captured by its column "coupon rate" (i.e. relevant interest rate); (b) for a long-term bond, its percentage cost should be captured by its yield (column "YTW" or YTM), and its percentage cost is assumed to equal to its coupon rate IF AND ONLYIF its yield information is missing, and (c) use column "current amount outstanding" in your calculations. Discuss any potential problems in these calculations. [Question 2.c] Value of Suncor's total debt is $9,611 million dollars currently, and the full-diluted market capitalization of its equity is $58,930 million. Assuming that the company's percentage cost of long-term debt represents its overall cost of debt, that the company has no preferred stocks, and that the company is subject to a corporate tax rate of 25%, calculate the company's weighted average cost of capital (WACC), using your answers from [2.a] and [2.b] and information provided in [2.c]. Discuss how WACC can be used by the company in its capital budgeting/allocation process