how do get the book value of debt, value of the firm, risk-free rate, pre-tax cost of debt, Wacc, and after-tax cost for heinz 2009 & 2010 case 12. need step by step
years 2008, 2009, and EXHIBIT 12.11 Income Statement (numbers in thousands except per-share amounts: fiscal year ends in 2008 2009 2010 Revenue 9,885.556 10,011,331 10.494.983 Costs of goods sold 6,233,420 6,442,075 6.700,677 Gross profit 3.652.136 3.569.256 3,794 306 SGSA expense 2,081 801 2.066.810 2.235,078 Operating income 1.570,335 1.502.446 1.559.228 Interest expense 323.289 275,485 250.574 Other income expense) (16.283) 92.922 (18.200) Income before taxes 1.230.763 1.319,883 1.290.454 Income taxes 372.587 375.483 358,514 Not income after taxes 858,176 944.400 931,940 Adjustments to net income (12.251) (21,328) 167048 Not income 844.925 923,072 354,892 Diluted EPS 261 289 271 Dividends per share 1.52 1.66 1.68 April) Data souro: H. J. Hona SEC filings. 2001-10 EXHIBIT 12.21 Balance Sheet (numbers in thousands except per-share amounts: fiscal year ends in April) 2008 2009 2010 2008 2009 2010 Cash Not receivables Inventories Other current assets Total current assets Not fixed assets Other noncurrent assets Total assets Accounts payable Short-term debt Current portion of long-term debt Other current liabilities Total current Habilities Long-term debt Other noncurrent liabilities 617.687 1.161.481 1,378.216 168,182 3.325,566 2.104.713 5.134.764 10.565,043 1.247,479 124,290 328,418 969,873 2,670,060 4,730,946 1,276,217 6,007,163 1,887,820 10,565,043 373,145 1.171.797 1.237,613 162,466 2.945,021 1,978,302 4.740.861 9,664.184 1.113,307 61,297 4,341 883,901 2,062,846 5,076,186 1,246,047 6,322,233 1.279.105 9.664,184 31486 483.253 1,045,338 1,249,127 273,407 3.051,125 2,091,796 4,932,790 10.075.711 1.129,514 43,853 15,167 986,825 2,175,359 4,559,152 1,392,704 5.951,856 1,948,496 10,075,711 317.69 Equity Total fiabilities and equity Shares outstanding fin millions of dollars) 311.45 EXHIBIT 12.3 1 Capital Market Data (yields and prices as of the last trading day in April of the year indicated) Average Historie Yields 2003 2004 2005 2006 2007 2008 2009 2010 1-year 1.22% 1.55% 3.3396 4.98% 4.89% 1.85% 0.49% 0.41% 5-year 2.85% 3.63% 3.90% 4.92% 4.51% 3.03% 2.02% 2.43% 10 year 3.89% 4.53% 4.21% 5.07% 4.63% 3.77% 3.16% 3.69% 30-year! 4.79% 5.31% 4.61% 5.17% 4.89% 4.49% 4.05% 4.53% Moody's Aan 5.53% 5.87% 5.21% 5.95% 5.40% 5.51% 5.45% 5.13% Moody's Bar 6,65% 6.58% 5.97% 6.74% 6.31% 6.87% 8.24% 6.07% 3-month commercial paper 1.21% 1.08% 2.97% 4.90% 5.22% 1.91% 0.22% 0.24% Heinz Capital Market Prices of Typical Issues 2009 2010 Heinz stock price $34.42 $46.87 Bond price 6.750% coupon, somiannual bond due 3/15/32 (Ban rated) 91.4 116.9 Bond price: 6.625% coupon, semiannual bond due 10/15/12 (Bao rated) 113.7 Note that bond data were slightly modified for teaching purposes Data Sources: Federal Roserve, Value Line, Morningstar, and case writer estimates The 20-year yield is used for 2000-05, when the 30-year was not issued Sheppard gathered some market data related to Heinz (also shown in Exhibit 12.3). He easily obtained historic stock price data. SUCES TIC TICS the company's beta using the 1165 lil a AA ... ** Campbell Soup Dol Monte Kraft 7.589 Financial Summary Revenues (in millions of dollars) Book value of equity (in millions of dollars) Book value of debt (in millions of dollars) Market Data 40,386 25,972 18,990 728 3.739 1,827 1.290 2,624 Beta Shares outstanding in millions of dollars) Share price (dollars as of close April 30, 2010) Typical Standard & Poor's bond rating Representativo yield on long-term debt 0.65 1.735 29.90 BB8- 5.12% 0.55 363 35.64 A 4.36% 0.70 182 15.11 BB 6.19% B 192/734
