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Below is information the firms capital structure use the

Below is information the firm's capital structure. Use the information given to compute the weighted average cost of capital. Do this in the same spreadsheet that you computed the operating cash flows.

Book Value of Debt	$1,500,000,000
Market Value of Debt	$2,750,000,000
Book Value of Equity	$1,500,000,000
Market Value of Equity	$3,750,000,000
Beta	1.25
Risk free rate	5.25%
Expected return on the market	14.25%
YTM on AAI's debt	8.75%
Tax rate	35%

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