Use the 10-year Treasury Bond rate as the risk free rate and assume that the market risk premium is 6.5% to find Teslas cost of equity. Assume that Teslas bonds are rated AAA and that Teslas corporate tax rate is 21%. Assume that Teslas bonds have no floatation costs, but the cost of issuing equity is 3.5%.

Find Teslas weighted average cost of capital. Assume that the project will be financed with internal funds.

You will need to find additional financial information from the Wall Street Journal and online at sites like http://finance.yahoo.com to complete your calculation.

Use Teslas debt-to-equity ratio to compute the percentages of debt and equity.

Homework 8A) 210 year Treasury Bond = Risk Free Rate 45678MarketRiskPremium=CorporateTaxRate=CostofIssuingEquity=a)FindTeslascostofequity: b) Find WACC: c) Use Debt/Equity Ratio to Computer Percentages of Debt and Equity Use Tesla's debt-to-equity ratio to compute the percentages of debt and equity. Homework 8A) 210 year Treasury Bond = Risk Free Rate 45678MarketRiskPremium=CorporateTaxRate=CostofIssuingEquity=a)FindTeslascostofequity: b) Find WACC: c) Use Debt/Equity Ratio to Computer Percentages of Debt and Equity Use Tesla's debt-to-equity ratio to compute the percentages of debt and equity