You are to calculate Weighted-Average-Cost-of-Capital (WACC) for Southwest Airlines using theattached data collected from the Bloomberg Terminal on December 1, 2018. In the supplemental Excel file, note that the firm has eight long-term bond issues outstanding. The spreadsheet contains the required data on book value,

market prices and yields on these instruments.Assume the firm faces a marginal tax rate of 21% (the upcoming rate for 2019). Also, assume that the

long-term return on the stock market is 12% (as in Chapter 12), and that the return on short-term T-bills (month) represents the risk-free rate, near December 1 this rate is 2.30%.