Estimate the weighted-average cost of capital for Kraft Foods (KFT).
Feel free to use any other sources you like.
Recent financial statements of most public companies: https://www.secfilings.com/
Stock prices: https://finance.yahoo.com.
1) Estimate the organization's cost of equity capital based on the Capital Asset Pricing Model.
2) What is the organization's asset beta (its unlevered equity beta)?
3) What is your estimate of the organization's weighted-average cost of capital? Clearly indicate what data you used and show how you calculated the WACC.
4) What is your estimate of the organization's unlevered cost of capital? Clearly indicate what data you used and show how you calculated the unlevered cost of capital.
5) Why might you want to know a company's unlevered cost of capital?