This assignment is for extra credit. You will be earning a maximum of 3% points to be added to your final course grade if you turn in your extra credit by the assigned deadline. This extra credit exercise should take no more than 20 to 25 minutes to complete. Once you complete the table below, submit your extra credit via Blackboard through the assignment box that has been set up.

Why this exercise? The cost of capital is a key input in capital expenditures decisions. Knowledge of how it is determined is important for any business major. Chapters 7 through 9 provide knowledge and skills to calculate the cost of capital for your firm.

Required source of information for this assignment: www.finance.yahoo.com

Instructions: Use the figures from Getting to Know Your Company, Your Company's Risk and Return and Your Company's Bond Values and YTMs if you participated in these extra credit opportunities. Otherwise, use the following instructions to gather the necessary information.

• Cost of debt: Got to finra_markets.morningstar.com/BondCenter. Click on the "Search" tab in the middle of the screen. Search for your company by entering either the company's name or ticker symbol in the appropriate space provided. After you hit return, a list of your company's outstanding bonds will appear. You may notice that some bonds do not have yield information. Do not focus on those. This indicates that there have been no bond trades for the bond in some time. Find the longest maturity bond that has trading activity that has yield information and record the YTM in the space provided below.
• Cost of common stock: Go to Yahoo site listed above. Record the Beta for your company found in your company's Summary tab. Use the CAPM equation to find the cost of equity. Assume the nominal risk-free rate (r_rf) is 2.5% and the market risk premium (RP_m) is 5.5%
• Market capitalization: Record the market capitalization figure that appears on your company's Summary tab in Yahoo Finance. P.S. Market capitalization refers to the total market value of the firm's outstanding common stock.

For new information not appearing in previous assignments, go to the latest available company's annual balance sheet statement. Collect the following information:

• Long-term debt

Assume that the target capital structure of the firm will remain the same as its current capital structure (in terms of the weights used).

Use a tax rate of 25%

Your Name:
Item	Your Response
Your company's name	CINTAS (CTAS)
kd (YTM)
ks (From CAPM)
Market capitalization
Long-term debt
Assume that the market value of debt is equal to its book value. What is the total market value of debt plus equity? Make sure that what you calculation is consistent with how the numbers of presented. Are all components expressed in the same denomination? Billions, Millions or Thousands? If not, please adjust your figures to make sure your figures are consistent so there are no errors in the calculation.
wd - percent of debt used in its target capital structure. Show calculation
ws - percent of equity used in its target capital structure. Show calculation.
Based on all information collected, determine the cost of capital for your firm. Show all calculations.