Please help with question # 5. Please see feedback in blue. Thank you so much for your help!!!!

5. Calculate the Weighted Average Cost of Capital (WACC) for McCormick and Company using the formula WACC = W, R. (1-T) + W, rS and W. = Value of debt / Value of debt plus value of equity; W = Value of Stock Equity / Value of Debt Plus Value of Equity. For ease, the CFO says to use book value of Debt and the market Value of Equity. On February 26, 2019 the market Value of Equity (or Market Cap) in Yahoo was $17.5 billion. Use the 2018 10-K Financial Statements filed January 25, 2019 and look on the Balance sheet to see the total of Short term borrowings, Current portion of long term debt and Long term debt. Use 4% for the cost of debt. Use 27.5% as the tax rate - a combination of federal and state income tax. Instructions Cost of Capital Capital Budgeting O Type here to search L P e o 5. WACC= Value of equity= Cost of Debt Tax Rates Value of Debt.= risk free rate= Weight of Debt Weight of Equity= Cost of equity= WACC= 7-9% CAPM method here Wo Rp (1-T)+ Wers $17,500,000,000.00 4% 27.50% $46,950,000,000.00 Value of debt should be about $4.7 billion not $47 billion 2.25% Where did you get $46.95 billion for debt? 73% Show your calculation of the value of debt 27% 12% + 4.56% Correct method but incorrect answer because weights are incorrect Instructions Cost of Capital Capital Budgeting 4 @ L P e O et e wl Type here to search