You have just been assigned to the team that is in charge of estimating Disneys WACC. You must estimate the WACC by utilizing the following information:

-Yield to maturity for ten-year Treasury Bonds (10 Yr Bond%) this will be your risk-free rate = 3.125%

- Also at finance.yahoo.com, you will need:

Disneys market capitalization (market value of equity)= 169.93B

Enterprise value= 208.68B

Cash= 13.27B

Beta=1.22

Assume that Disney has a tax rate of 35%

1.) Utilizing this information, calculate Disneys cost of equity capital using the CAPM, the risk-free rate, and a market risk premium of 5%

2.) Calculate Disneys WACC

3.) Describe how confident you are in your estimate that has been calculated and identify what assumptions were made in the data collection process.