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I need all calculation steps for the cost of capital (weights, cost of debts, cost of equity, weighted average cost of capital

Cost of Capital Boeing's weighted-average cost of capital (WACC) could be estimated using the following well-known formula: WACC = (percent Debt)(ra)(1 t) + (percent Equity)(re) where: ra = Pretax cost of debt capital Marginal effective corporate tax rate percent Debt = Proportion of debt in a market - value capital structure re = Cost of equity capital percent Equity = Proportion of equity in a market - value capital structure Exhibit 10 gives information about betas and debt/equity ratios for Boeing and comparable companies. Exhibit 11 provides data about Boeing's outstanding debt issues. While Boeing's marginal effective tax rate had been smaller in the past, it currently was expected to be 35%. In June 2003, the yield on the three-month U.S. Treasury bill was 0.85%, and the yield on the 30-year Treasury bond was 4.56%. On June 16, 2003, Boeing's stock price closed at $36.41. 2001 EXHIBIT 3 | Boeing Income Statements ($ in millions; except per-share data) 2002 Sales and other operating revenues $54,069 Cost of products and services 45,499 General and administrative expense 2,534 Research and development expense 1,639 Impact of September 11, 2001 charges/(recoveries) (2) Other operating expenses 531 Earnings from operations 3,868 Other income/(expense) 42 Interest and debt expense (730) Earnings before income taxes 3,180 Income taxes! 861 Net earnings before cumulative effect of accounting change 2,319 Cumulative effect of accounting change, net of tax (1,827) Net earnings $492 Earnings per share $0.62 $58,198 48,778 2,389 1,936 935 264 3,896 318 (650) 3,564 738 2,826 1 $2,827 $3.46 Source: Boeing Company, 2002 Annual Report 'Boeing's average tax rate consistent with reported financial performance for 2002 was 27%. Yet Boeing's marginal effective tax rate was 35%. EXHIBIT 2 | Boeing Balance Sheets ($ in millions) 2002 2001 Assets Cash and cash equivalents Accounts receivable Inventories, net of advances, progress billings, and reserves Other current assets Total current assets Customer and commercial financing-net Property, plant, and equipment-net Goodwill and other acquired intangibles-net Prepaid pension expense Deferred income taxes and other assets Total assets $2,333 5,007 6,184 3,331 16,855 10,922 8,765 3,888 6,671 5,241 $52,342 $633 5, 156 7,559 3,497 16,845 9,345 8,459 6,447 5,838 2,044 $48,978 $13,739 1,814 4,257 Liabilities and Shareholders' Equity Accounts payable and other liabilities Short-term debt and current portion of long-term debt Other current liabilities Total current liabilities Accrued retiree health-care and pension-plan liability Long-term debt Other liabilities Shareholders' equity: Common shares Retained earnings Treasury shares Total shareholders' equity Total liabilities and shareholders' equity 19,810 11,705 12,589 542 $14,237 1,399 4,930 20,566 5,922 10,866 799 1,831 14,262 (8,397) 7,696 $52.342 4,994 14,340 (8,509) 10,825 $48,978 Source: Boeing Company, 2002 Annual Report. Cost of Capital Boeing's weighted-average cost of capital (WACC) could be estimated using the following well-known formula: WACC = (percent Debt)(ra)(1 t) + (percent Equity)(re) where: ra = Pretax cost of debt capital Marginal effective corporate tax rate percent Debt = Proportion of debt in a market - value capital structure re = Cost of equity capital percent Equity = Proportion of equity in a market - value capital structure Exhibit 10 gives information about betas and debt/equity ratios for Boeing and comparable companies. Exhibit 11 provides data about Boeing's outstanding debt issues. While Boeing's marginal effective tax rate had been smaller in the past, it currently was expected to be 35%. In June 2003, the yield on the three-month U.S. Treasury bill was 0.85%, and the yield on the 30-year Treasury bond was 4.56%. On June 16, 2003, Boeing's stock price closed at $36.41. 2001 EXHIBIT 3 | Boeing Income Statements ($ in millions; except per-share data) 2002 Sales and other operating revenues $54,069 Cost of products and services 45,499 General and administrative expense 2,534 Research and development expense 1,639 Impact of September 11, 2001 charges/(recoveries) (2) Other operating expenses 531 Earnings from operations 3,868 Other income/(expense) 42 Interest and debt expense (730) Earnings before income taxes 3,180 Income taxes! 861 Net earnings before cumulative effect of accounting change 2,319 Cumulative effect of accounting change, net of tax (1,827) Net earnings $492 Earnings per share $0.62 $58,198 48,778 2,389 1,936 935 264 3,896 318 (650) 3,564 738 2,826 1 $2,827 $3.46 Source: Boeing Company, 2002 Annual Report 'Boeing's average tax rate consistent with reported financial performance for 2002 was 27%. Yet Boeing's marginal effective tax rate was 35%. EXHIBIT 2 | Boeing Balance Sheets ($ in millions) 2002 2001 Assets Cash and cash equivalents Accounts receivable Inventories, net of advances, progress billings, and reserves Other current assets Total current assets Customer and commercial financing-net Property, plant, and equipment-net Goodwill and other acquired intangibles-net Prepaid pension expense Deferred income taxes and other assets Total assets $2,333 5,007 6,184 3,331 16,855 10,922 8,765 3,888 6,671 5,241 $52,342 $633 5, 156 7,559 3,497 16,845 9,345 8,459 6,447 5,838 2,044 $48,978 $13,739 1,814 4,257 Liabilities and Shareholders' Equity Accounts payable and other liabilities Short-term debt and current portion of long-term debt Other current liabilities Total current liabilities Accrued retiree health-care and pension-plan liability Long-term debt Other liabilities Shareholders' equity: Common shares Retained earnings Treasury shares Total shareholders' equity Total liabilities and shareholders' equity 19,810 11,705 12,589 542 $14,237 1,399 4,930 20,566 5,922 10,866 799 1,831 14,262 (8,397) 7,696 $52.342 4,994 14,340 (8,509) 10,825 $48,978 Source: Boeing Company, 2002 Annual Report

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