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Calculate the Weighted Average Cost of Capital for Amazon and eBay. Use the following: WACC...

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Finance

Calculate the Weighted Average Cost of Capital for Amazon and eBay. Use the following: WACC = Weighted after tax cost of debt + Weighted Cost of preferred stock + Weighted Cost of Common Stock where: Weighted after tax cost of debt = Kd x (1-tax rate) x (weight of debt) The corporate tax rate is a flat 21% Assume both companies only use bonds to acquire debt financing; they do not use short term bank loans or any other debt financing to calculate their WACC. If you cannot find bond issue information use the bond rates for its Moodys (https://fred.stlouisfed.org/series) or S&P rankings. You may assume both companies have Aaa rated bonds unless you can find an on-line source. Document which sources you used.

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