Estimate your firm’s (Southwest Airlines) approximate WACC; use the most recent year’s debt ratio to find the weights of debt and
equity. If your company issues preferred stock, for simplicity’s sake, ignore it.
The cost of debt will be the approximate YTM calculated in Week 5. ( Week 5 Assignment attached)
Use CAPM to calculate your company’s required rate of return on stock. The beta was determined in Week 6 ( Attached)
use the current 10-year Treasury bonds’ YTM as the risk-free rate. Using a reliable source, research the current market’s expected
rate of return (for example, the S&P 500). Be sure to mention all reference sources.
Could look at sites
Yahoofinance.com
Morningstar.com
ect
This is a discussion board post not a essay.
