Pa You have recently been huired by Swan Motors, Inc. (SMI), in its relatively new treasury management department SMI was found eight years ago by Joe Swan, Joe found a method to manufacture a cheaper battery that will hold a larger charpe giving a car powered by the battery a range of 700 miles before requiring a charge. The cars manufactured by SMI are madured and carry a price that allows the company to compete with other mainstreani auto manufacturers. The company is privately owned by Joe and his family, and it had sales of 597 million last year SMI primarily sells to customers who buy the cars online, although it does have a limited number of company owned dealership The customer select any customization and makes a deposit of 20 percent of the purchase price. After the order n taken the car is made to order, typically within 15 days. SMI's growth to date has come from its profits. When the company had torrent capital, it would expand production Relatively little formal analysis has been used in its capital budgeting process Joe has just read about capital budgeting techniques and has come to you for help For starter the company has never attempted to determine its cost of capital and Joe would like you to perform the analys. Because the company is privately owned, it is difficult to derermine the cout of equity for the company Joe want you to use the pure play approach to estimate the cost of capital for SMT and he has con Tesla Moton as a representative company. The following questions will lead you through the steps to calculate this thinate GUESTIONS OF CAPITAL Pa 1. Most publicly traded corporations are required to submit quarterly (10-Q and anal (10 Kreports to the SEC detailing the financial operations of the company over the past quarter or year, respectively. These corporate filings are available on the SEC website at www.sec.gov.Go to the SEC website, follow the Search for Company Filips" link, and search for SEC filings made by Tesla Motors (TSLA) Find the most recent 10-Q or 10-K and download the form. Look on the balance sheet to find the book value of debt and the book value of equity. 2. To estimate the cost of equity for TSLA, go to finance valoo.com and enter the ticker symbol ISLA Follow the links to answer the following questions: What is the most recent dock price listed for TSLA'What is the market value of equity, or market capitalization? How many shares of stock does TSLA cutstanding? What is the most recent ammual dividend Cat Vou use the dividend discount model in this case? What is the bela for TSLA'Now go back to tinabera.com and follow the Bonds link. What is the veld on three month Treasury billug the historical market nak premium. What is the cost of equity for TSLA mg CAPM You now need to calculate the cost of debt for TSLA Go to in markets.moringstar.com TSLA as the camp and find the vield to maturit for each of TSLA'S bonds. What is the weighted meape cost of debt for TSLA tebeck value weights and in the market value Does it takradifference in this case if you bool valor mutket value weats 1 You to use all the decessary information to calculate the shtetarot of capitalf TSLAG enfer TSLA as the compar TSLA's bonds. What is the weighted average cost of debt for TSL in the book value weights and using the market value weights? Does it make a difference this case if you use book val weights or market value weights 4. You now have all the necessary information to calculate the wayhted average cost of capital for TSLA. Calculate these book value weights and market value weight, assuming TSLA has a 21 percent tax rate Wuch number is more relevant 5. You used TSLA as a pure play company to estimate the cost of capital for SMI Are there any potential problem with this approach in this situation Pa You have recently been huired by Swan Motors, Inc. (SMI), in its relatively new treasury management department SMI was found eight years ago by Joe Swan, Joe found a method to manufacture a cheaper battery that will hold a larger charpe giving a car powered by the battery a range of 700 miles before requiring a charge. The cars manufactured by SMI are madured and carry a price that allows the company to compete with other mainstreani auto manufacturers. The company is privately owned by Joe and his family, and it had sales of 597 million last year SMI primarily sells to customers who buy the cars online, although it does have a limited number of company owned dealership The customer select any customization and makes a deposit of 20 percent of the purchase price. After the order n taken the car is made to order, typically within 15 days. SMI's growth to date has come from its profits. When the company had torrent capital, it would expand production Relatively little formal analysis has been used in its capital budgeting process Joe has just read about capital budgeting techniques and has come to you for help For starter the company has never attempted to determine its cost of capital and Joe would like you to perform the analys. Because the company is privately owned, it is difficult to derermine the cout of equity for the company Joe want you to use the pure play approach to estimate the cost of capital for SMT and he has con Tesla Moton as a representative company. The following questions will lead you through the steps to calculate this thinate GUESTIONS OF CAPITAL Pa 1. Most publicly traded corporations are required to submit quarterly (10-Q and anal (10 Kreports to the SEC detailing the financial operations of the company over the past quarter or year, respectively. These corporate filings are available on the SEC website at www.sec.gov.Go to the SEC website, follow the Search for Company Filips" link, and search for SEC filings made by Tesla Motors (TSLA) Find the most recent 10-Q or 10-K and download the form. Look on the balance sheet to find the book value of debt and the book value of equity. 2. To estimate the cost of equity for TSLA, go to finance valoo.com and enter the ticker symbol ISLA Follow the links to answer the following questions: What is the most recent dock price listed for TSLA'What is the market value of equity, or market capitalization? How many shares of stock does TSLA cutstanding? What is the most recent ammual dividend Cat Vou use the dividend discount model in this case? What is the bela for TSLA'Now go back to tinabera.com and follow the Bonds link. What is the veld on three month Treasury billug the historical market nak premium. What is the cost of equity for TSLA mg CAPM You now need to calculate the cost of debt for TSLA Go to in markets.moringstar.com TSLA as the camp and find the vield to maturit for each of TSLA'S bonds. What is the weighted meape cost of debt for TSLA tebeck value weights and in the market value Does it takradifference in this case if you bool valor mutket value weats 1 You to use all the decessary information to calculate the shtetarot of capitalf TSLAG enfer TSLA as the compar TSLA's bonds. What is the weighted average cost of debt for TSL in the book value weights and using the market value weights? Does it make a difference this case if you use book val weights or market value weights 4. You now have all the necessary information to calculate the wayhted average cost of capital for TSLA. Calculate these book value weights and market value weight, assuming TSLA has a 21 percent tax rate Wuch number is more relevant 5. You used TSLA as a pure play company to estimate the cost of capital for SMI Are there any potential problem with this approach in this situation