Calculate the weighted average cost of capital (WACC) for this firm. Not all numbers will be used. For Rd, you can use the provided yield.

To estimate Re, you can use either 1) the constant growth method = (Div1/Price) + g. For growth, use retention x ROE. or 2) the capital asset pricing model (CAPM) . Calculate the WACC for the firm.

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Company Name Bond Information Maturity Date Callable? Coupon Rating Price Yield to maturity* Settlement Date* Payment Frequency Type Amount Outstanding (this issue) *Last Trade Yield and Last Trade Date Kohl's (KSS) Stock Information 2045/7/17 Stock Price 61.68 Yes Dividend 0.7 5.55% EPS BBB- ROE 2.68 *2019 number 12.59% 113.78 Beta 2.22 4.592% Market Cap $ 9,727.9 in M Equity (Balance Sheet] $ 5,196.0 in M 2021/3/19 Semiannual Stock Rating Corporate Debenture 450,000 in thousands Total Debt on Balance Sheet Tax Rate $ 6,739.00 in M 25% Market Risk Premium Risk-free rate 6.50% 1.74% Company Name Bond Information Maturity Date Callable? Coupon Rating Price Yield to maturity* Settlement Date* Payment Frequency Type Amount Outstanding (this issue) *Last Trade Yield and Last Trade Date Kohl's (KSS) Stock Information 2045/7/17 Stock Price 61.68 Yes Dividend 0.7 5.55% EPS BBB- ROE 2.68 *2019 number 12.59% 113.78 Beta 2.22 4.592% Market Cap $ 9,727.9 in M Equity (Balance Sheet] $ 5,196.0 in M 2021/3/19 Semiannual Stock Rating Corporate Debenture 450,000 in thousands Total Debt on Balance Sheet Tax Rate $ 6,739.00 in M 25% Market Risk Premium Risk-free rate 6.50% 1.74%

Answer rating: 100% (QA)

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