WACC:

1. Find the market value of your companys common stock, preferred stock, and bonds (long-term debt). Use the capital structure section of Thompson One.
   • Total shareholders equity includes common and preferred stock.
   • For this project assume that common stock and preferred stock have the same return (it can be challenging to find historical returns for preferred stock).
2. Using the information from part 1, find the weight of each (sum = 100%)
3. Find the firms annual cost of debt. Use the YTM you found in the bonds section. Assume the company has a 35% tax rate. (Assume that all the firms long-term debt has the same cost as the bond you evaluated).
4. Find the firms annual cost of preferred stock (if the firm has preferred stock).
5. Find the firms annual cost of common stock using CAPM= Rf+(Erm-Rf)
   • Already calculated in the risk/return section.
6. Calculate the companys annual WACC
7. YTM 3.39%
8. Beta 0.42
9. Assume market risk premium
10. risk free rate 2%

Capital Structure Consolidated Market Cap* o - Cash and Short Termo + Short Term Debt o + Long Term Debt o + Preferred Stock o + Minority Interest o Debt Maturity Schedule 37,336 Total Shareholders Equity o 8,774 541 Total Capital o 10,968 o Debt to Equity 43.53 2,179 Debt to Capital 19.87 3,766.25 14.83 = Enterprise Value o 42,756 *Price as of 11/19/19, USD in millions. Date of filing 09/30/19