Suggested sources of the data:

SECs Edgar database for financial statements and annual report

stock returns from CRSP database to calculate the beta (an Excel file with the data is available on D2L).

FINRAs TRACE database for public bond yields

U.S. Treasurys web-site for T-bond rates

Yahoos finance web-site for current stock prices

Estimate the most current Weighted Average Cost of Capital of Fedex Corp.Assume that the capital structure (the market debt-to-equity ratio) observed as of the most recent annual financial statements remains in place forever for the company.Also assume that the market risk premium is 5% and that the marginal tax rate is 21%.

fc1cebdcc5cf5e05 Home Insert Page Layout Formulas Data Review View Insert AT 2 Wrap Text .. Merge & Center, $ , % , .00 +00 Conditional Format Cell Formatting as Table Styles f PERMNO Standard Industrial Company Index Bid/Ask Shares Value-Weighted Return-incl. PERMNO DateClassification Code ymbo Name CoAverage Returns Outstandi dividends Return on the S&P 500 Ind 133.320010.072686 295516 295516 167.39999 169.57001 4513 FDX Ready fc1cebdcc5cf5e05 Home Insert Page Layout Formulas Data Review View Share ^ Insert AT DeleteZ Wrap Text 00 Conditional Format Cell Center00Formatting as Table Styles *Merge & Center, $, 96 , Filter Standard Industrial Classification Code Ticker Company Index Bid/Ask Name ames Value-Weighted Return-incl, Return on the S&P 500 Ind Returns Outstandidividends WRDS Ready 100% O-0-000000000-000-0000-0000-00-0-000 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 0 fc1cebdcc5cf5e05 Home Insert Page Layout Formulas Data Review View Insert AT 2 Wrap Text .. Merge & Center, $ , % , .00 +00 Conditional Format Cell Formatting as Table Styles f PERMNO Standard Industrial Company Index Bid/Ask Shares Value-Weighted Return-incl. PERMNO DateClassification Code ymbo Name CoAverage Returns Outstandi dividends Return on the S&P 500 Ind 133.320010.072686 295516 295516 167.39999 169.57001 4513 FDX Ready fc1cebdcc5cf5e05 Home Insert Page Layout Formulas Data Review View Share ^ Insert AT DeleteZ Wrap Text 00 Conditional Format Cell Center00Formatting as Table Styles *Merge & Center, $, 96 , Filter Standard Industrial Classification Code Ticker Company Index Bid/Ask Name ames Value-Weighted Return-incl, Return on the S&P 500 Ind Returns Outstandidividends WRDS Ready 100% O-0-000000000-000-0000-0000-00-0-000 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 0