calculating-the-wacc-for-southwest-airlines-based-off-the-information-given-in-the-template

You are to calculate Weighted-Average-Cost-of-Capital (WACC) for Southwest Airlines using the attached data collected from the Bloomberg Terminal on April 21, 2019. In the supplemental Excel file, note that the firm has eight long-term bond issues outstanding. The spreadsheet contains the required data on book value, market prices and yields on these instruments. Assume the firm faces a marginal tax rate of 21% (the current federal flat tax rate for corporations). Also, assume that the long-term return on the stock market is 12% (as in Chapter 12), and that the return on short-term T-bills (I month) represents the risk-free rate, near April 21 this rate is 2.45%.