estimate the cost of equity and WACC for Air New Zealand. You can assume that Beta 5Y on the information sheet is the equity beta of Air New Zealand. Assume that the market risk premium is 4.72% and the risk free rate is 0.21% (as of April 30, 2021). Use 2% as the cost of debt for Air New Zealand. Assume that the marginal corporate tax rate is 28%. (Provide your answer as x.xx. For The debt to capital ratio (net debt / (net debt + market cap)) is example, if the net debt is 500 and total capital is 1000, fill in 0.50) The cost of equity is %. (Provide your answer as x.xx. If the cost of equity is 5.05%, fill in 5.05) The WACC is %. (Provide your answer as x.xx. If the WACC is 5.05%, fill in 5.05.) Key Statistics EPS Estimate (NZD) -0.05 -0.1 -0.151 -0.2 Jul 20 Jun 20 May20 Aug 20 Oct 20 Sep 20 Apr21 May 21 Feb 21 Mar21 Jan 21 Dec20 12 Months 12 Months 12 Months 12 Months 12 Months Jun-30-2019A Jun-30-2020A Dec-31-2020A Jun-30-2021 Jun-30-2022E 5,785.00 4,836.00 3,055.00 2,576.36 3,772.08 5.3% (16.4%) (48.0%) (46.7%) 46.4% 26.3% 27.8% 26.1% 27.3% 34.7% 14.5% (0.8%) 14.6% 22.3% 5.7% (1.6%) (12.9%) 5.0% 4.8% (9.4%) (20.5%) (10.8%) 3.8% 0.24 (0.40) (0.18) 0.05 (29.1%) Nov 20 Total Revenue Growth Over Prior Year Gross Profit Margin % EBITDA Margin % EBIT Margin % Net Income Margin % Diluted EPS Excl. Extra Items Diluted EPS Excl. Extra Items... 6.9% (0.56) Estimates Recommendatio Target Price LT Growth % Underperform(4.20) 1.33200000 5.00% Revenue by Business and Geographic Segments (NZD, mm) 7,500 Forward Multiples FY2021 FY2022 37.28x 1.39x 5,000 New Zealand Australia and Pati PIE TEV/REV TEV/EBITDA PEG P/BV o NM 2.04x 13.99x NM 2.09x 6.26% Transportation United Kingdom and Europe Asla Americas 7.46x 2.04x 2,500 Competitors - NTM TEV/Fwd EBITDA 200.0 2015 2016 2017 2018 2019 2020 * Segments with negative values, such as corporate eliminations, are excluded from the total and percentage calculations and do not appear on the charts 150.0 100.0 Competitors - NTM TEV/Fwd EBITDA 200.0 0 2015 2016 2017 2018 2018 2019 2020 * Segments with negative values, such as corporate eliminations, are excluded from the total and percentage calculations and do not appear on the charts 150.0 100.0 50.0 Top Holders 0.0 Aug20 Jan 21 Oct 20 Nov 20 Dec20 Sep 20 Holder Jun 21 Apr 21 May 21 Feb 21 Mar 21 Jun 20 Jul20 Market Value (NZD in mm) 1,024.7 29.6 26.2 American Airlines,... Cathay Pacific Airw... ANA Holdings Inc. (... - Japan Airlines Co..... Common Stock Equivalent Held 588,887,282 16,987,394 15,068,390 14,140,929 12,250,475 New Zealand JPMorgan Chase & Co, Private Banking and... Norges Bank Investment Management The Vanguard Group, Inc. Dimensional Fund Advisors L.P. Holders as of Sunday, May 02, 2021 % of Total Shares Outstanding 52.45 1.51 1.34 1.26 1.09 24.6 21.3 1.74 1,122.81 1,953.69 174.00 3,482.00 Share Price & Volume (NZD 1,953.7 1,122.8 46.5% 1.751 1.51 1.25 Uhan Market Data Last (Delayed) Open Previous Close Change on Day Change % on Day Day High/Low 52 wk High/Low Volume (mm) Beta 5Y 1.72 Market Cap (mm) 1.73 Shares Out (mm) 1.74 Float % (0.02) Shares Sold... (1.1%) Dividend Yield % 1.73/1.72 Diluted EPS 1.96/1.21 P/Diluted EPS... 0.06 Avg 3M Dly Vim... 1.74 5,261.69 Apr 21 May21 Mar 21 Dec20 Jan 21 Oct 20 Nov 20 Jul 20 Aug 20 Sep 20 Jun 20 Capitalization Share Price as of Apr-30-2021 Shares Out Market Capitalization Cash & Short Term Investments + Total Debt + Pref. Equity + Total Minority Interest = Total Enterprise Value (TEV) Impl.Shares Out Impl.Market Cap Book Value of Common Equity + Pref. Equity + Total Minority Interest >OZEN Feb 21 Jun 21 0.0% (0.56) NM 1,266.00 1.72 15MI 10M SM OM www.ml