The objective of this assignment is to determine a weighted average cost of capital (WACC) for Hasbro, Inc. Except for information provided herein, students can use their creativity and ingenuity to identify the appropriate sources of information needed in completing this assignment. Information used should be as current as possible, including the 2019 Hasbro Annual Report. Students should provide a specific citation to identify the source for each element of input used in their calculations. You should calculate Hasbros WACC both above and below the Retained Earnings breakpoint (i.e., using the cost of internal equity and then using the cost of external equity).

Additional suggestions / assumptions: 1. Assume flotation costs of 10% would be required to sell new common stock (assume no flotation costs on the issuance of additional debt).

2. Base the after-tax cost of new long-term debt on the current yield to maturity of one of Hasbros most recent debt issues a $900 million issuance of 3.9% notes due in 2029 and issued in 2019.

3. Base your cost of common equity on a combination of the discounted cash flow (DCF) method and the Capital Asset Pricing Model (CAPM) technique.

4. Assume that Hasbros financial management has examined the existing capital structure and determined it to be optimal.

5. Although the new (per the 2017 tax act) statutory corporate federal income tax rate is 21%, it is common for corporations to have an effective tax rate that varies from the statutory rate. This effective tax rate is required disclosure in the companys financial statements (typically in the footnotes). Use the effective tax rate in your calculations.

6. While it will be helpful to review/utilize Hasbros 2019 Annual Report, including the financial statements and footnotes to the financial statements in completing this analysis, you will also need to access outside sources in order to complete this assignment.