Write a one-page business memo explaining the following: 1. What is the weighted average cost of capital that should be used for investment decisions in the GPC budgeting process? Discuss the pros and cons of WACC and detail the types of projects the WACC should be used to evaluate and any times where adjustments to the WACC should be considered. Consider how your WACC estimate varies from the Alpha Spread estimate and discuss if you feel any changes need to be made to your work based on Alpha Spread data. 2. Detail the process and key considerations in the calculations for both your cost of debt and cost of equity. Why did you ultimately arrive at your specific estimates? 3. Discuss the impact of the calendar-year bond maturities for GPC. Based on Value Line cash flow estimates, will GPC have difficulty retiring this debt? Copyright Arizona Board of Regents Page 3 of 3 4. Review GPC's most recent investor presentation. What guidance does management provide about the firm's debt position? Do you agree with this assessment? 5. Highlight any other particularly noteworthy items your team observed in the calculation or research process