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 Common Equity 2014 9,124 2013 6,255 2012 5,419 2011 5,216 Debt 13,968 13,927 13,273 12,827 12,878 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 3 1 5 3 7 B 9 0 1 2 3 -4 15 26 Common Equity Expected Return 2015 11.5% 2014 15.2% 2013 18.9% 2012 9.4% 2011 7.7% Beta Risk Free Rate Exp. Market Return 1.0 1.5% 11.5% 1.2 1.8% 13.0% 1.3 1.9% 15.0% 0.9 2.1% 10.2% 0.7 2.4% 9.9% 2015 2014 2013 2012 2011 Debt YTM Par/Face Coupon Payment Years to Maturity Current Price Payments are annual 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 BOD CORPORATION WACC Calculation 2015 2014 2013 2012 2011 WACC QUESTION What is the primary function/use of calculating the WACC for a firm