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Instructions: Answer all questions and submit assignment in blackboard by the due date. Each question is 6 points for a total of 30 points. Partial credit given if work is shown. Case Narrative: The financial data for Kraft Heinz Company (KHC) is provided below. This information is to be used to answer the mini-case questions. Equity Information: Kraft Heinz Company (Source Yahoo! Finance) The Kraft Heinz Company (KHC NasdaqGs - Nasdaq GS Real Time Price. Curren 32.53 +0.07 (+0.22%) At close: May 17 4:00PM EDT Summary Chart Conversations St Previous Close 32.46 Market Open 32.41 Beta ( Monthl Bid 32.53 x 800 PE Ra Ask 32.75 x 4000 EPS (1 Day's Range 32.21 - 32.87 Earning 52 Week Range 31.53 - 64.99 Forwar & Yielc 2018 Dividend Data Nov 15, 2018 0.625 Dividend Aug 16, 2018 0.625 Dividend May 17, 2018 0.625 Dividend Mar 08, 2018 0.625 Dividend Share Statistics Avg Vol (3 month) 3 12.67M Avg Vol (10 day) 3 8.31M Shares Outstanding 5 1.22B Additional Information for Kraft Heinz Company: Annual dividend for the COMMON STOCK is expected to grow at a rate of 2.5% Kraft's PREFERRED STOCK currently sells at a price of $40 per share. It pays a dividend of $1.50 (which is NOT expected to grow) Bond Information: Kraft Heinz Company MARKETSINSIDER WATCHLIST Q search MARKETS STOCKS INDICES COMMODITIES CRYPTOCURRENCIES CURRENCIES ETES NEWS US42307TAG31 + ADD KRAFT HEINZ FOODS 2032 SHARE 113.63 USD 1.26 (1.12%) 5/15/2019 BER Prev. Close 113.63 Open 113.63 Day Low 113.63 Day High 52 Week Low 113.63 109.07 52 Week High 119.27 113.63 INTRADAY 1W 3M 1Y 5Y MAX 120- 118- -0% MARKETS INSIDER WATCHLIST a search MARKETS STOCKS INDICES COMMODITIES CRYPTOCURRENCIES CURRENCIES ETES NEWS COUPON Coupon 6.750% Denomination 1000 Additional Information for Kraft Heinz Bond Issue: The bond has 10 years remaining until maturity . 1. What is the market capitalization for the Kraft Heinz Company? Chapter 4 2. What is the cost (required rate of return) of Kraft's preferred stock? Chapter 7 3. What is the cost (required rate of return) of Kraft's common stock? Chapter 7 4. What is the cost (yield to maturity %) for Kraft's bonds? Chapter 6 5. What caused Kraft's current bond price to increase in price from the original issuance price? Chapter 6

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