Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help me find the WACC of solarcity? The cost of equity is 1.8. I am having trouble finding the cost of debt. EXHIBIT

image text in transcribedimage text in transcribedimage text in transcribed

Can you help me find the WACC of solarcity? The cost of equity is 1.8. I am having trouble finding the cost of debt.

image text in transcribedimage text in transcribedimage text in transcribed
EXHIBIT 3: SOLARCITY BALANCE SHEETS, 2014-2016 In millions of US$ (except for per share items) 2014 2015 2016 Assets Current assets: Cash and cash equivalents 504.38 382.54 290.71 Short-term investments 138.31 11.31 0.00 Restricted cash 20.88 39.86 74.72 Accounts and Rebates receivable -net 52.73 45.55 77.29 Inventories 217.22 342.95 172.71 Prepaid expenses and other current assets 64.10 79.93 77.50 Total current assets 997.62 902.14 692.93 Long Term Assets 3,553.61 6,384.98 8,437.84 Total assets 4,551.22 7,287.12 9,130.76 Liabilities and equity Current liabilities: Accounts payable 237.81 364.97 207.64 Current portion of financing obligation 328.70 828.39 1,311.67 Total current liabilities 566.51 1,193.36 1,519.31 Deferred revenue 557.41 1,010.49 1,086.42 Long-term debt and Solar bonds, net of current portion 1,442.97 2,402.93 2,759.18 Deferred U.S. Treasury grant income 397.49 382.28 343.26 Other liabilities and deferred credits 244.47 563.51 1,147.54 Total liabilities 3,208.85 5,552.56 6,855.70 Common stock: 0.01 0.01 0.01 Additional paid-in capital 1,600.72 2,051.23 2,352.97 Accumulated deficit -258.36 -316.69 -77.92 Total equity 1,342.37 1,734.55 2,275.06 Total liabilities and equity 4,551.22 7,287,11 9,130.76 EXHIBIT 4: SOLARCITY CASH FLOW STATEMENTS, 20142016 In Millions of US$ (except for per share items) 2014 201 5 2016 Operating activities: Net loss -375.23 -768.82 -820.35 Depreciation, amortization and write-offs 11.07 14.05 14.85 Accounts receivable 0.95 -11.05 -32.95 Inventories -97.35 -125.34 170.58 Accounts payable 112.48 125.47 -149.69 Other Operating Activities 130.23 -24.20 308.78 Net cash used in operating activities -217.85 -789.88 -508.78 Investing activities: Payments for the cost of solar energy systems, leased and to be leased -1,162.96 -1,665.64 -1,611.01 Purchase of property, plant and equipment -22.89 -176.54 -62.90 Purchases of short-term investments -167.40 -44.59 0.00 Proceeds from sales and maturities of short-term investments 28.76 170.74 1 1.24 Acquisitions and Other investments -20.33 -10.70 -26.67 Net cash used in investing activities -1,344.81 -1,726.73 -1,689.33 Financing activities: Borrowings under long-term debt 369.80 1,093.26 1,376.18 Repayments of long-term debt -336.56 -215.93 -866.95 Other Financing Cash Flow Items 287.73 342.03 332.66 Proceeds from investments by non-controlling interests and redeemable 777.96 1,097.49 1,420.82 Distributions paid to non-controlling interests and redeemable -117.13 -109.51 -148.86 Net cash provided by financing activities before equity and conveitible 982.15 2,207.33 2,113.85 Proceeds from Convertibles and Options 507.82 187.45 -7.58 Net cash provided by financing activities 1,489.97 2,394.78 2,106.27 Net increase in cash and cash equivalents -72.70 -121.84 -91.83 EXHIBIT 2: SOLARCITY INCOME STATEMENTS, 2014-2016 In millions of US$ (except for per share items) 2014 2015 2016 Revenue: Operating leases and solar energy systems incentives 174 294 422 Solar energy systems and components sales 81 106 Total revenue 308 255 400 730 Cost of revenue: Solar energy systems sales and operating leases 79 114 Depreciation and amortization 170 98 167 309 Total cost of revenue 176 281 Gross profit 479 79 Operating expenses: 119 251 Sales and marketing 239 457 443 General and administrative 156 245 Restructuring, Pre-production and other 229 0 0 Research and development 175 19 65 55 Total operating expenses 414 767 Loss from operations 902 -336 -648 -650 Interest expenses 66 118 170 Loss before income taxes -402 -765 Income tax benefit (provision) -821 27 -3 Net loss 0 -375 -769 -820 Note: EPS = earnings per share Source: SolarCity SEC 10K Filings, Tesla Motors http://ir.tesla.com/secfiling.cfm?filingID=1564590-17-3084&CIK=1408356. Inc., accessed June 14 2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

10th edition

978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648

More Books

Students also viewed these Finance questions

Question

_____ 8. the completion of a business deal without the use of money

Answered: 1 week ago

Question

_____ 6. the top trading partner of the United States

Answered: 1 week ago