Tax. rate estimate: Tesla has had profitable quarters but has never had a protable year. For this reason, we will assume a tax rate of zero for Tesla. Consider what this means for the "after tax" cost of debt when you calculate WACC. . Using the book value of debt and equity, estimate Tesla's weighted average cost of capital (WACC), show your work. Start by calculating the % weights for debt and equity. (2 pts) . Recalculate the book value WACC, n m I ' r fi 1 firm ' ta; rate of 22 "A; (1 pt.) . Now, using the market values of debt and equity (double check the note about debt at the top of the table), estimate Tesla's weighted average cost of capital (WACC), show your work. Start by calculating the % weights for debt and equity and to make sure your values are in the same units (don't mix thousands of dollars and millions/billions). (2 pts) . Recalculate the market value WACC, n m 'I' l i fi 1 fir ' a m rm: of 22%; (1 pt.) . For Tesla, does it make a difference if the firm uses market weights or book weights in determining their WACC? (3 pts) . Given the trends shown in the following chart of historic beta values for Tesla, how much