Sample Task
This sample task is provided for illustration only. The scores may not reflect a model's overall performance within this domain. Domain scores represent the average across 100 held-out prompts. Sample tasks are passed to models with relevant source documents.
We are doing Discounted Cash Flow Analysis (“DCF”) on Coupang (NYSE: CPNG) as they are a competitor to one of our clients.
To complete the analysis, please first identify the Weighted Average Cost of Capital (“WACC”) and beta we need to use for the DCF based on the assumptions below.
Assumptions: • When calculating capital structure weights for WACC (Debt to Total Capitalization and Equity to Total Capitalization), use the 2024 debt amount (short-term + long-term). Exclude leases from debt. For the equity portion, use market capitalization as of 12/31/2024. • For Risk Free Rate, use the 10-year Treasury Note median yield rate for the most recently completed Treasury auction as of May 6th, 2025. Refer to the attached Treasury.pdf file. • Equity Risk Premium is 7.5%. • Please use Coupang’s April 2023 Term Loan interest rate for cost of debt. Use the online search for the data (10-K, for the Fiscal Year Ended December 31, 2024). • For beta, please compare the Coupang’s 2024 daily returns to the SPDR S&P 500 ETF (SPY) index and use the slope function in Excel to calculate the beta. • Tax Rate is 25%.
Please also provide the following inputs that went into the WACC calculation: Debt amount, Market Capitalization, Debt to Total Capitalization %, Equity to Total Capitalization %, Risk-Free Rate, Cost of Equity, Cost of Debt, and After-Tax Cost of Debt.
Refer to the Beta.pdf file that contains the closing stock prices from Yahoo Finance for Coupang and the SPDR S&P 500 ETF (SPY) index for the calendar year 2024. Dates are in the format: Month/Day/Year.
Round all percentage values to one decimal place and round all share prices to two decimal places. For beta, please round to two decimal places. Round the debt amount and market capitalization to two decimal places, and present the values in billions.