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United Parcel Service Inc. was trading at $ 9 7 . 5 3 on December 3 1 , 2 0 1 8 . Its dividend
United Parcel Service Inc. was trading at $ on December Its dividend per share was $ its market beta was estimated to be its average pretax borrowing rate was and its assumed statutory tax rate was consisting of the federal rate plus the state and local rate, net of any federal benefits.
UPSs market value of equity market capitalization was $ billion, computed as million shares times its $ price, and its total market value enterprise value was $ billion, computed as $ billion in equity plus the fair value of longterm debt of $ billion disclosed in note of the financial statements
Assume a riskfree rate of and a market risk premium of to answer the following requirements. Estimate UPSs cost of debt capital, cost of equity capital, and weighted average cost of capital.
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