Question: 6 BASED ON THE INFORMATION BELOW, ANSWER QUESTION 56 TO 60 of The Boeing Company is an American multinational corporation that designs, manufactures, and sells

 6 BASED ON THE INFORMATION BELOW, ANSWER QUESTION 56 TO 60
of The Boeing Company is an American multinational corporation that designs, manufactures,
and sells airplanes, rockets, and satellites worldwide. Boeing is among the largest

6 BASED ON THE INFORMATION BELOW, ANSWER QUESTION 56 TO 60 of The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rockets, and satellites worldwide. Boeing is among the largest global aircraft manufacturers, the second-largest defense contractor in the and the largest exporter in the United States by dollar value. The financial statements of Boeing Company are given in the appendix. You also collect the information below for Boeing in Table 4 and Table 5. You wish to calculate the cost of equity, cost of debt, and WACC for Boeing company in 2015. Table 4: Information for Boeing Company Year Quarter Dividend Paid Stock Price ( Boeing Co.) $150.00 2015 Q4 $1.09 Beta 0.8 2015 Q3 $1.09 T-bill Yield (3 months) 0.50% 2015 Q2 $1.09 T-bill Yield (6 months) 0.50% 2015 Q1 $1.09 T-bill Yield (12 months) 0.50% 2014 Q4 $0.91 Market risk premium 4.50% 2014 Q3 $0.91 2014 Q2 $0.91 2014 01 $0.91 2013 04 $0.73 2013 Q3 $0.73 2013 Q2 $0.73 2013 01 $0.73 2012 04 $0.49 2012 Q3 $0.49 2012 Q2 $0.49 2012 Q1 $0.49 2011 04 $0.40 2011 Q3 $0.40 2011 Q2 $0.40 2011 01 $0.40 56. The average tax rate for Boeing Company in 2015 is closest to? Select one: a. 26.59% Ob. 27.66% O c. 38.23% O d. 45.21% 57 57. The cost of equity for Boeing Company in 2015 using CAPM is closest to? d Sut of Select one: a. 3.60% b. 4.10% O c. 4.50% d. 5.00% 58. The cost of equity for Boeing Company in 2015 using the Dividend Growth Model Approach is closest to? Select one: O a. 32.73% O b. 31.89% O c. 29.92% d. 29.71% 59. The weighted average cost of debt for Boeing using the book value weights is closest to? Select one: a. 3.18% b. 3.61% c. 3.96% d. 4.67% 60. Now, you can calculate the weighted average cost of capital (WACC). Using the book value of debt, the book value of equity, and CAPM, the WACC for Boeing Company in 2015 is closest to? Select one: a. 3.24% b. 3.36% c. 15.35% d. 17.67%

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