WACC Use the information below to calculate the Calendar Year WACC for Greenback, Inc. Once Completed, answer the question below regarding WACC (this can be done in excel or on a separate word doc) Greenback, Inc. Common Equity, Preferred Equity and Debt Balances + 2015 12,312 2014 9,124 2013 6,255 2012 5,419 2011 5,216 Common Equity Debt 13,968 13.927 13,273 12,827 12878 Total Firm Value 26,281 23,051 19,528 18,246 18,094 Corp. Tax Rate 35% 35% 35% 35% 35% BOD CORPORATION Common Equity, Preferred Equity and Debt Expected Returns Common Equity Expected Return 2015 11.5% 2014 15.2% 2013 18.9% 2012 9.4% 2011 77% Beta Risk Free Rate Exp. Market Return 1.0 1.5% 11.5% 12 1.8% 13.0% 1.3 1.9% 150% 0.9 2.1% 10.2% 0.7 2.4% 9.9% 2015 2014 2013 2012 2011 Debt YTM x D Exp Market Retum E 11.5% F 13.0% G 15.0% H 10.2% 9.9% 2015 2011 2014 2013 2012 Debt YTM . Payments are annual Par/Face Coupon Payment Years to Maturity Current Price 1,000 60 12 1,100 1,000 65 13 980 1,000 50 18 1,000 1,000 55 15 1,050 1,000 45 21 900 1 5 5 7 3 BOD CORPORATION WACC Calculation 2015 2014 2013 2012 2011 WACC 3 1 2 QUESTION What is the primary function/use of calculating the WACC for a firm? 4 5 -7 8 59 50 51