WACC is the weighted average of costs of debt, preferred stock and equity. Choose (please run first company by me) a rela-tively large non-financial public company (market cap more than 3B) and calculate its WACC. You should then show:

1. how you estimated the percentage of capital that comes from debt, and common equity

2. use CAPM tc estimate cost of equity

3. find cost of debt (you will also need to estimate an average tax rate)

(a) either via yield of actual outstanding bonds of the company, or

(b) via dividinc amount of interest expense by the outstanding debt