Ferrari, the famous high-performance automotive group, launched its initial public offering (IPO) on October 20, 2015. Although the share price had initially risen to over euros () per share, by the end of the year it had settled to euros (). Ferrari had been owned by Fiat (Italy), and had never calculated its own cost of capital before, one independent of Fiat. It now needed to, and one of its first challenges was estimating its beta. With only two months of trading to base it on, the corporate treasury group had started with what were considered "comparable firms", which for Ferrari, meant firms in the luxury goods industry, not automotive. Luxury goods were historically less volatile than the market, so the initial guess on Ferrari's beta was . Italian risk-free cost of debt in euros 4.12%
Ferrari's cost of debt in euros 4.11%
Italian corporate income tax rate 31%
Ferrari's prospective beta 0.84
Italian equity market risk premium (equity return over risk-free rate) 5.6%
Ferrari's shares outstanding 214,000,000
Ferrari's share price in euros 41
Ferrari's debt outstanding in euros 517,000,000

a. What is Ferrari's cost of debt, after-tax, in euros?
b. What is Ferrari's cost of equity in euros?
c. What is Ferrari's market capitalization?
d. What is Ferrari's total value of equity outstanding?
e. What proportion of Ferrari's capital structure is equity?
f. What proportion of Ferrari's capital structure is debt?
g. What is Ferrari's weighted average cost of capital?
h. What is Ferrari's WACC if its beta was higher, like other automotive companies, say ?

Ido not understand this project overview agricultural commodities are bought and sold through the stock exchange. the price of commodities changes all the time. investors buy many agricultural commodities before they are ready for shipping. when an investor buys an agricultural commodity that is going to be ready in the future, they call this purchasing futures. this might be a future crop, meat that has not yet been processed, or another type of agricultural commodity. for this project, you will have to decide how to spend $10,000. research the new york stock exchange. find one or more agricultural commodities that you are interested in. remember, it may be listed as a future crop. instructions identify the agricultural commodities that you think have the best chance of going up in price. think about what is going on with supply and demand. decide how you will spend your money. you may purchase only agricultural commodities. check the market every day for a week. record the price of your commodity or commodities each day. you may buy or sell your commodities at any time during the week. you may sell your commodities and buy different ones. feel free to experiment with the $10,000 by buying and selling commodities, but make sure to keep a careful record of your activities. at the end of the week, you will write a report on your investments. this report should be structured to include this information: page 1: explain how the stock market works. page 2: list all commodities purchased. describe each in detail. discuss why you selected these commodities. remember, they must be agricultural. page 3: create a chart or graph to illustrate the price of your commodity or commodities over the week’s time. list all of your activity buying and selling. make sure you include prices and details. page 4: write a summary of your experience. describe what you might do differently if you were using actual money. propose potential reasons why the price of each commodity may go up or down.