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How do you figure out cost of debt. Show your work to please because Im trying to understand this Case 12 H. J. Heinz: Estimating

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Case 12 H. J. Heinz: Estimating the Cost of Capital in Uncertain Times EXHIBIT 12.1 I Income Statement (numbers in thousands except per-share amounts: fiscal year ends in April) 2008 2009 2010 Revenue 9,885,556 6,233,420 3,652,136 2,081.801 1,570,335 323,289 (16,283) 1,230,763 10,011,331 6,442.075 3,569.256 2,066,810 1,502,446 275,485 92,922 1,319,883 375,483 10,494,983 6,700,677 3,794,306 2,235,078 Costs of goods soled Gross profit SG&A expense Operating income Interest expense Other income (expense) Income before taxes Income taxes Net income after taxes Adjustments to net income 1,559,228 250,574 (18,200) 1,290,454 358,514 931,940 372587 0444 858,176 (13,251) 844,925 2.61 1.52 (21.328) 923.072 2.89 1.66 (67,048) 864,892 2.71 1.68 Net income Diluted EPSs Dividends per share Data source: H. J. Heinz SEC flings, 2008-10

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