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Using the attached date can you calculate the Weighted average cost of capital for the three companies? Exhibit 4 H. J. Heinz: Estimating the Cost
Using the attached date can you calculate the Weighted average cost of capital for the three companies?
Exhibit 4 H. J. Heinz: Estimating the Cost of Capital in Uncertain Times Comparable Firm Data Financial Sununary Revenues (in millions of dollars) Book value of equity (in millions of dollars) Book value of debt (in millions of dollars) Market Data Beta Shares outstanding (in millions) Share price (dollars as of close April 30, 2010) Typical Standard & Poor's bond rating Representative yield on long term debt Kraft 40,386 25,972 18,990 0.65 1,735 29.90 BBB 5.1200 Campbell Soup 7,589 728 2,624 0.55 363 35.64 4.36% Del Monte 3,739 1,827 1,290 0.70 182 15.11 6.19% Data sources: Value Line; H J _ Heinz SEC fi_lings, 200810; author estimates; Morningstar.
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