Can Someone fill out the assumptions and reasoning for the assumptions for the given data for southwest airlines?
Table 1
Assumptions for ValuePro.net Valuation
Company Name – Southwest Airlines (LUV)
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 

ShortTerm 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.) (LT + ST Debt from Balance Sheet) 
2708 

Value Preferred Stock Outstanding ($ mil) 
0 

Company WACC (%) (Look up or Calculate) 
7.9 