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Go to Yahoo!Finances site for Eastman Chemical and calculate its WACC for 2017: https://finance.yahoo.com/quote/EMN?p=EMN The...

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Finance

Go to Yahoo!Finances site for Eastman Chemical and calculate its WACC for 2017:

https://finance.yahoo.com/quote/EMN?p=EMN

The companys average tax rate = 21.235%.

Cost of Equity:

Find the risk-free rate Rf (3-month T-bill):

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

Find the S&P 500 market return Rf year-to-date.

Use CAPM to estimate the cost of equity (RE

Cost of Debt:

Obtain its interest expense from 2017 income statement.

Obtain its total debt borrowing for 2017 balance sheet:

WACC= (E/V x RE) +(D/V x RD x (1-Tc)

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