Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help on what numbers to use for market value of debt and equity to use in the WACC formula EXHIBIT 3: SOLARCITY BALANCE

image text in transcribedimage text in transcribed

I need help on what numbers to use for market value of debt and equity to use in the WACC formula

image 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 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 financial management

Authors: Jeff Madura

13th edition

978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211

More Books

Students also viewed these Finance questions