Discussion Post
Estimate Costco's 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. Use CAPM to calculate your company's required rate of return on stock. The beta was determined; 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).
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.