• Use under armour as the company and complete in Powerpoint.
  • Cost of Debt
  • Determine the market value of the firms debt issues. Be sure to review the firms 10-K. Also, the website http://finra-markets.morningstar.com/BondCenter may be of assistance.
  • You will need to calculate the firms composite YTM on its bonds. This can be achieved by calculating a weighted-average YTM for its bond issues.
  • After calculating the YTM for the bond issues, calculate the firms after-tax cost of debt. If the firms marginal tax rate cannot be identified in its 10-K, assume that the tax rate will be 35%.
• Calculate the WACC
  • Determine the market capitalization of the firms common equity and preferred equity, if any.
  • Determine the firms capital structure based on the market value of the firms equity and debt. The market value of the firms debt can be obtained from the Morningstar website, listed in the Cost of Debt section above.
  • CalculatetheWACC.Asyourecall,theformulaforWACCisr_WACC=E(E+D)r_E+D(E+D)r_D(1-T_C).
• Be sure to discuss how the values were obtained or derived to arrive at your WACC result. Finally, be sure to discuss any strengths or limitations in the calculations you performed, and discuss your analysis about the overall validity of your results.