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KNOWLEDGE CHECK Here is the WACC function for U.S. drug company Merck. The WACC calculation has been hidden. What is the WACC? 88.8% 2.0% 11.2%

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KNOWLEDGE CHECK Here is the WACC function for U.S. drug company Merck. The WACC calculation has been hidden. What is the WACC? 88.8% 2.0% 11.2% 8.1% W YROT Click to open/close chart. HE MRK US $ 83.14 +0.51 m ..... At 15:17 d Vol 4,044,276 MRK US Equity 1 Create Report Merck & Co Inc Cost of Capital - Current Market Value m N83.14 83. 15 T 175 0 83.00PH 83.30D L 82.71D Val 336.065M Joutput to Excel Weighted Average Cost of Capital Period MR - 2018 Q4 Capital Structure (Millions of USD) 3) Equity 4) Debt Cost (A-T) 5) Preferred Equity WACC Weight 88.8% 11.2% 0.0% Cost WxC 8.9% 1.9% 0.0% Market Cap ST Debt LT Debt Pref. Eqty Total 198,694.8 5,308.0 19,806.0 0.0 223,808.8 88.8% 2.4% 8.8% 0.0% 100.0% 6) History WACC EVA ROIC EVA Spread Track 2 Annotate 9 Zoom Economic Value Added (Millions of USD), 7) Net Operating Profit 8) Cash Operating Taxes NOPAT 7930.00 2991.45 4938.55 9) Total Investment Capital Capital Charge 58065.00 4726.29 Economic Value Added 212.26 ROIC EVA Spread 8.51% 0.37% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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