can someone fill out the assumptions and reasoning for the assumptions for the given data for southwest airlines

ValuePro.net Assumptions

Your Assumptions

Explain the Reasoning for Your Assumptions

Excess Return Period (Years) (10 years is appropriate)

10

Revenues ($ mil) (From Income Statement)

17182.00

Growth Rate (%) (Estimated Annual Growth Rate in Earnings in Future)

14.00

Net Operating Profit Margin (%) (EBIT from Income Statement)

4.01

Tax Rate (%) (From Income Statement: Taxes / Earnings Before Taxes)

38.54

Stock Price ($) (Current Price per Share)

59.37

Shares of Stock Outstanding (mil.) (Be careful with decimal)

722.30

10 Yr. Treasury Bond Yield (%)

5

Bond Spread to Treasury (%) (1.5 is appropriate)

1.5

Preferred Stock Yield (%)

7.5

Depreciation Rate (%) (Percentage of Revenue; Calculate)

4.94

Investment Rate (%) (Percentage of Revenue for Capital Expenditures – Calculate)

7.89

Working Capital (%) (Percentage of Revenue – WC is Current Assets; Calculate)

-1.79

Short Term Assets ($ mil.) (Current Assets from Balance Sheet)

4514

Short-Term Liabilities ($ mil.) (Current Liabilities from Balance Sheet)

5708

Equity Risk Premium % (Should be between 5% and 6%)

3

Company Beta for Stock (Number) (Look up Beta)

1.05

Value (Book) of Debt Outstanding ($ mil.) (L-T + S-T Debt from Balance Sheet)

2708

Value Preferred Stock Outstanding ($ mil)

0

Company WACC (%) (Look up or Calculate)

7.9