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Case Narrative: The financial data for Kraft Heinz Company (KHC) is provided below. This information is to be used to answer the mini-case questions.

Equity Information: Kraft Heinz Company (Source Yahoo! Finance)

38.90 -0.13 (-0.03%)

At close: Nov 24 4:00 PM EDT

Previous Close 38.90

Open 39.08

Bid 38.59 x 1000

Ask 38.91 x 1400

Days Range 38.87 39.17

52 Week Range 32.78 44.87

2022 Dividend Data

Nov 23, 2022 .40 dividend

Aug 16, 2022 .40 dividend

May 17, 2022 .40 dividend

Feb 08, 2022 .40 dividend

Share Statistics:

Ave Volume 8.04 M

Shares Outstanding: 1.225 B

Additional Information for Kraft Heinz Company:

Annual dividend for the COMMON STOCK is expected to grow at a rate of 3.0%

Krafts PREFERRED STOCK currently sells at a price of $50 per share. It pays a dividend of $2.00 (which is NOT expected to grow)

Bond Information: Kraft Heinz Company

Kraft Heinz Foods 2032

V 112.37 USD 1.26 (1.12%)

Coupon 6.75%

Demonination 1000

Additional Information for Kraft Heinz Bond Issue:

The bond has 11 years remaining until maturity

What is the market capitalization for the Kraft Heinz Company? ____________________________________________________

What is the cost (required rate of return) of Krafts preferred stock? ______________________________________________________

What is the cost (required rate of return) of Krafts common stock? _______________________________________________________

What is the cost (yield to maturity %) for Krafts bonds? _______________________________________________________

What caused Krafts current bond price to increase in price from the original issuance price? _______________________________________________

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