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Homework - WACC . Choose two different listed companies, and calculate the WACC for each company Pick two companies where you have at least access
Homework - WACC . Choose two different listed companies, and calculate the WACC for each company Pick two companies where you have at least access to the following information: Total amount of debt (Debt relevant component) Share price of today (Equity relevant component) Total number of outstanding shares (Equity relevant component) D = Debt E = Equity = # of Shares Outstandin g * Share Price at Market T = Tax Rate D E WACC = (Cost of Debt) *(1-7)+ (Cost of Equity) D+E D+E 12/10/2020 28 Homework- WACC Explain your results why is the WACC of one company higher than the other? Reasoning is important. Your text can be written in the excel spreadsheet as well. For the tax rate go to Moodle and use the provided countrytaxrates(2).xls ForCost of Equity and Cost of Debt" go to moodle and use the provided waccGlobal 02020.xls for the industry your company is in. All other information you may derive from eg: Bloomberg Yahoo finance sharesoutstanding history or visit the company websites and look at most recent Annual Report 2019 You need total debt, total equity - market capitalization ie (outstanding shares * share price at market) 12/10/2020 29 Homework - WACC + calculate the WACC in MS Excel + upload excel spreadsheet with WACC calculation in designated homework upload field + gather information and upload or send me sources (ie Screenshot of Information used) and details to your WACC calculation to my email address: Homework - WACC . Choose two different listed companies, and calculate the WACC for each company Pick two companies where you have at least access to the following information: Total amount of debt (Debt relevant component) Share price of today (Equity relevant component) Total number of outstanding shares (Equity relevant component) D = Debt E = Equity = # of Shares Outstandin g * Share Price at Market T = Tax Rate D E WACC = (Cost of Debt) *(1-7)+ (Cost of Equity) D+E D+E 12/10/2020 28 Homework- WACC Explain your results why is the WACC of one company higher than the other? Reasoning is important. Your text can be written in the excel spreadsheet as well. For the tax rate go to Moodle and use the provided countrytaxrates(2).xls ForCost of Equity and Cost of Debt" go to moodle and use the provided waccGlobal 02020.xls for the industry your company is in. All other information you may derive from eg: Bloomberg Yahoo finance sharesoutstanding history or visit the company websites and look at most recent Annual Report 2019 You need total debt, total equity - market capitalization ie (outstanding shares * share price at market) 12/10/2020 29 Homework - WACC + calculate the WACC in MS Excel + upload excel spreadsheet with WACC calculation in designated homework upload field + gather information and upload or send me sources (ie Screenshot of Information used) and details to your WACC calculation to my email address
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