Suppose, in the 2021Q3 (3rd quarter of 2021) Moderna Inc had outstanding debt of $10.8 billion, and its total shareholder's equity was about $10.1 billion. These numbers are from the 1st link below. Without reading into the details, you decide to calculate the proportions of debt and equity in the company using these numbers. Furthermore, suppose you find from Yahoo Finance (see 2nd link(s) below) that Moderna's equity beta is around 1.48, and your estimate of its debt beta is 0.5. What is the cost of capital for Moderna, given a risk-free rate of 1%, and the expected market return of 5%? 1st link (Explore Edgar to see all public companies filing of annual/quarterly reports and many more in the US): https://www.sec.gov/ix?doc=/Archives/edgar/data/0001682852/000168285221000027/mrna-20210930.htm 2nd link(s) (Yahoo Finance is a great source of info on publicly traded companies): https://finance.yahoo.com/quote/MRNA?p=MRNA&.tsrc=fin-srch https://finance.yahoo.com/quote/MRNA/key-statistics?p=MRNA Note (not required, only for those who are curious): (i) For those of you who like coding, and maybe use Python, the above two are examples of websites that you can use to get hold of information that you can use in a large sample analysis of a finance question, or (relatively) big data analysis. (ii) Another interesting read: "Moderna backer raises $3.4bn for biotech push" (from Financial times, link: https://www.proquest.com/docview/2551429715/F43C65938E364235PQ/1?accountid=14888 ). If you have trouble accessing it through the link, you can sign up for free access to Financial Times through Warwick Business School. Please note: Students registered on a WBS module should be able to access the following link for signing up free access to Financial Times: https://my.wbs.ac.uk/-/go/clickthrough/ft/

(20 )

a. 4.6%

. 2.46%

. 4.89%

. 1.67%

e. None of the above