Question

File Teols View Homework - Chapter 14 To b e the cost of equity for TSLA, to finance yahoo.com and t he ticket wybol TSLA. Follow the links to the following questions What is the most a price and for TSLAY What is the market value of guy, of m et carbon How many shares of stock does TSLA utanding? What is the most recent and can you the dividend discount model in this Wut the beta for TSLA? Now lack to finance yahoo.com and follow the "Bonds uk What is the one month Treasury bill? Using the Pastorical market premium what is the cost of pity for TSLAung CAPM? MINICASE COST OF CAPITAL FOR SWAN MOTORS You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury man acement department SM was founded eight year by Joe Swan Joe found a method to manufacture a cheaper battery that will hold a larger cars in a car powered by the bar Dery a range of 700 miles before requiring a charge. The factured by SM are madszed and carry a price that allows the company to compete with other mainstream at manufacturers. The company is privately owned by Joe and his family, and it had sales of 597 mallion last year SMI primarily sells to customers who buy the cars , though it does have a limited number of company owned dealerstops. The customer select any customization and makes a deposit of 20 percent of the purchase price, Aer the order is taken the car is made to order, typically within 45 days SMS owth o date has come from its profits. When the company had suttient capital, it would expand production Relately lame formal analy sis has been used in its capital budgeting process Joe has just read about capital budgeting techniques and has come to you for help Forters, the company has never attempted to de termine its cost of capital and Joe would like you to perform the Because the com pany is privately owned it is difficult to determine the cost of quay for the company Joe wants you to use the pure play approach to estimate the cost of capital for SMI and he has cho sen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate QUESTIONS You now need to calculate the cost of debt for TSL Cote finna-markets morn- ingstar.com.enter TSLA as the company, and in the yield to maturity for each of TSLA's bonds. What is the weighted average out of debt for TSL wing the book value weights and in the market value weights? Does it make a difference in this case if you use book value weights or market value weight You now have all the necessary information to calculate the weighted average cost of cap ital for TSLA. Calculate this using book abe weights and market value weights as ing ISLA basa 21 percentax rate. Which sumber is more relevant Most publicly traded corporations are required to submit quarterly (10-0) and anal (10-K) reports to the SEC detailing the financial operations of the company over the past quarter or year, respectively. These corporate filings are available on the SEC website at www.crow. Go to the SEC website, follow the "Search for Company Filings link and search for SEC fil- ings made by Tesla Motors (TSLA) Find the most recent 10-Q or 10-K and download the form. Look on the balance sheet to find the book value of debt and the book value of equity 1-2 of 4

I just need help with the highlighted section please give details

Answer 1

The YTM of Tesla can be viewed from the following link: http://finra-markets.morningstar.com/BondCenter/Results.jsp

The requested information is as follows:

€ → Not secure finra-markets.morningstar.com/BondCenter/Results.jsp Market Data Investors > Market Data > Bonds > Results Last Updated: 11/06/2019 Company Information Bonds Equities and Options EDIT SEARCH Bonds Bond Results Mutual Funds Ratings Moody's S&P Watchlist Callable Sub-Product Type Corporate Bond Last Sale Price Yield 99.750 91.725 99.950 19.477 Feedback O 116.000 FAQ Issuer Name Symbol SOLARCITY CORP TSLA4061258 SOLARCITY CORP TSLA4301101 SOLARCITY CORP TSLA4441651 TESLA INC TSLA4530907 TESLA INC TSLA4103350 TESLA INC TSLA4103351 TESLA INC TSLA4474416 TESLA INC TSLA4830349 Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond Coupon Maturity 2.750 11/01/2018 1.625 11/01/2019 12/01/2020 5.300 08/15/2025 0.250 03/01/2018 1.250 03/01/2021 2.375 03/15/2022 2.000 05/15/2024 Subscribe to Notices O B- 95.200 99.130 110.088 118.000 125.487 105.438 -5.998 -4.762 -3.197 Corporate Bond B- 11 of 1 GO EDIT SEARCH Moody's - Moody's Investors Service is a registered credit rating agency that issues credit ratings for selected corporate bonds reported on TRACE. These ratings are Moody's current opinions of the relative future credit risk associated with such bonds.

The cost of debt can be calculated using the net of tax YTM of each bond.