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What is Berry Plastics WACC? Please use the formula and show the work? Rwacc = S/B + S * Rs + B/B + S *

What is Berry Plastics WACC? Please use the formula and show the work?

Rwacc = S/B + S * Rs + B/B + S * Rb

Rb = cost of debt

Rs = cost of equity

B = value of the firms debt or bonds

S = the value of the firms stock or equity

Rwacc = the firms weighted average cost of capital

Berry's Financials
Financial Statements 2013 2014 2015
Net Sales $ 4,647 $ 4,958 $ 4,881
Total Assets $ 5,135 $ 5,252 $ 5,028
Income Statement 2013 2014 2015 P&L (% of sales)
Net Sales $ 4,647 $ 4,958 $ 4,881 Cost of Sales 83% 85% 82%
Cost of Sales $ 3,835 $ 4,190 $ 4,012 Gross Profit 17% 15% 18%
Gross Profit $ 812 $ 768 $ 869 SG&A Expense 7% 6% 7%
SG&A Expense $ 307 $ 320 $ 357 Operating Income 8% 6% 8%
Operating Income $ 386 $ 316 $ 408 Interest Expense 5.3% 4.5% 3.9%
Interest Expense $ 244 $ 221 $ 191 Earnings Before Tax 1.8% 1.4% 2.5%
Earnings Before Tax $ 85 $ 67 $ 122 Net Income 1.2% 1.3% 1.8%
Net Income from Continuing Operations $ 57 $ 63 $ 86 Balance Sheet (% of Assets)
Earnings Per Share (diluted) $ 0.48 $ 0.51 $ 0.70 Cash 3% 2% 5%
Balance Sheet Fixed Assets 25% 26% 26%
Total Assets $ 5,135 $ 5,252 $ 5,028 ST Debt 5% 6% 7%
Cash $ 142 $ 129 $ 228 LT Debt 75% 73% 73%
Fixed Assets $ 1,266 $ 1,364 $ 1,294 Equity -4% -2% -1%
ST Debt $ 276 $ 314 $ 338 Cash Flow (% of Sales)
LT Debt $ 3,875 $ 3,844 $ 3,648 Operating Cash Flow 10% 11% 13%
Equity $ (196) $ (101) $ (53) Depreciation 5% 5% 5%
Cash Flow Statement Capital Expenditures 5% 4% 4%
Operating Cash Flow 464 530 637 Free Cash Flow 5% 6% 9%
Depreciation 236 256 259
Capital Expenditures 239 215 180
Free Cash Flow 225 315 457

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