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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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