What is your best estimate of the WACC for Heinz competition such as Kraft Foods, Campbells Soup Company, and Del Monte Foods? How do these companies influence thinking about the WACC for Heinz? Is it fair to compare?

Case 12 Heinz F163 File Home Insert Page Layout Formulas Data Review View Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Pr A1 f, Exhibit 4 Exhibit 4 2 H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES Comparable Firm Data Campbell Soup Del Monte Kraft 9 Financial Summary 10 Revenues (in millions of dollars) 11 Book value of equity (in millions of dollars) 12 Book value of debt (in millions of dollars) 13 14 Market Data 15 Beta 16 Shares outstanding (in millions of dollars) 17 Share price (dollars as of close April 30, 2010) 18 Typical Standard & Poor's bond rating 19 Representative yield on long-term debt 40,386 25,972 18,990 7,589 728 2,624 3,739 1,827 1,290 0.65 1,735 29.90 0.55 363 35.64 0.70 182 15.11 5.12% 4.36% 6.19% 21 Data sources: Value Line, H. J. Heinz SEC filings, 2008-10, case writer estimates, Morningstar 23 24 29 30 Title Page Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Figure 1 | Data for Figure 1 Type here to search Case 12 Heinz F163 File Home Insert Page Layout Formulas Data Review View Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Pr A1 f, Exhibit 4 Exhibit 4 2 H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES Comparable Firm Data Campbell Soup Del Monte Kraft 9 Financial Summary 10 Revenues (in millions of dollars) 11 Book value of equity (in millions of dollars) 12 Book value of debt (in millions of dollars) 13 14 Market Data 15 Beta 16 Shares outstanding (in millions of dollars) 17 Share price (dollars as of close April 30, 2010) 18 Typical Standard & Poor's bond rating 19 Representative yield on long-term debt 40,386 25,972 18,990 7,589 728 2,624 3,739 1,827 1,290 0.65 1,735 29.90 0.55 363 35.64 0.70 182 15.11 5.12% 4.36% 6.19% 21 Data sources: Value Line, H. J. Heinz SEC filings, 2008-10, case writer estimates, Morningstar 23 24 29 30 Title Page Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Figure 1 | Data for Figure 1 Type here to search