Using the principles and tools outlined in the textbook, form an estimate of the Weighted Average Cost of Capital (WACC) for Costco. In order to complete this task, you will need to do the following:

• Determine the cost of equity: Determine the required rate of return for your firm using the CAPM. Explain the approach and procedure you used (and justification for the sources of inputs used for your model) to make your determination and the meaning of this required rate of return.