Take an average of you results from CAPM and DDM. This is your cost of equity. SHOW YOUR CALCULATIONS. COST OF DEBT (SHOW YOUR CALCULATIONS!!!!!!!!!) 1. Last fiscal year end Interest Expense divided by the latest two-year average debt WACC - Weighted Average Cost of Capital WACC (E/V) X RE + (D/V) X RDX (1- Tc) E Capital from equity D Capital from debt V-Total capital RE Cost of equity (Take the average of the two methods) Rp Cost of debt Tc Tax rate (The latest Two-year Average Tax Rate: this can be found in Morningstar under key ratios profitability) 1. Calculate WACC for your company. 2. What is your company's WACC calculation according to gurufocus.com and valuepro.net 3. What is your company's ROIC? (Look this up on Morningstar) 4. Relative to your company's WACC is the ROIC higher/lower? What does this indicate about the company?