hc5385 WeekSiFinanciaLExercises . Compatibility Mode . Saved to this PC University of Phoenix Material Week Five Financial Exercises Your task is to determine the WACC for a given rm using what you know about WACC as well as data you can find through research. Your deliverable is a brief report in which you state your determination of WACC, describe and justify how you determined the number, and provide relevant information as to the sources of your data. Select a publicly traded company that has debt or bonds and common stock to calculate the current WACC. One good source for nancial data for compa- nies as well as data about their equity is Yahoo! Finance. By looking around this site, you shouid be abte to find the market capitalization (E) as weil as the 13 for any publiciy traded company. There are not many places left where data about corporate bonds is still avail able. One of them is the Finra Bonds website. To nd data for a particular company's bonds, nd the Quick Search feature, then be sure to specify cor- porate bonds and type in the name of the issuing company. This should give you a list of all of the company's outstanding bond issues. Clicking on the symbol for a given bond issue will lead you to the current amount outstanding and the yield to maturity. You are interested in both. The total of all bonds outstanding is D in the above formula. If you like, you can use the YTM on a bond issue that is not callable as the pretax cost of debt for the company. Screens 1-2 of 3 Assumptions: As you recall, the formula for WACC is: rWACC = (ElE+D) rE + D/(E+D) rD (1TC) The formula for the required return on a given equity investment is: ri= rf + pi * (RMkt-rf) RMktn' is the Market Risk Premium. For this project, you may assume the Market Risk Premium is 5% unless you can develop a better number. If is the risk free rate. The risk free rate is normally the yield on US Treasury securities such as a 10year treasury. For this assignment, please use 3.5%. You may assume a corporate tax rate of 40%. Submit the following: Write a 350 to 700worcl report that contains the following elements: 0 Your calculated WACC. . How data was used to calculate WACC. This would be the formula and the formula with your vaiues substituted. . Sources for your data. a A discussion of how much condence you have in your answer. What were the limiting assumptions that you made, if any? Include a Microsoft Excel le showing your WACC calculations discussed above. 4% llll a |+ 120% 5:30 PM " 3/19/2019 NYSE - NYSE Delayed Price . Currency in USD 99.85 + 0. 19 ( + 0 . 19% ) 99.85 0 . 00 ( 0 . 00% ) At close: 4: 00 PM EDT After hours : 6:50 PM EDT Summary Chart Conversations\ Statistics\ Historical Data\ Profile\ \Financials* \Analysis Options Holders Sustainability* Previous Close 99. 06 Market Cap 290. 09B 10 5D I'M GM YTD TY 5Y Max\ \ * * Full screen Open 99.99 Beta ( 3 Y Monthly ) 0. 64 100. 60 Bid 99. 60 x 800 PE Ratio ( TTM ) 44. 18 100. 20 ASK 0 . 00 * 900 EPS ( TTM ) 2.26 Day's Range 99.57 - 100.49 Earnings Date May 16 , 2019 52 Week Range 81. 78 - 106. 21 Forward Dividend & Yield 2. 12 ( 2. 15% ) 99. 40 Volume 5, 414 , 427 Ex - Dividend Date 2019 - 05- 09 10 AM 12 PM 02 PM 04 PM Avg. Volume 8, 261, 088 ly Target Est 109. 07