Question
What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del Monte Foods in the fiscal year 2010? How do
What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del Monte Foods in the fiscal year 2010? How do these WACCs influence your thinking about the WACC for Heinz? (Assumption: marginal tax rate 30%)
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| Campbell | Del |
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| Kraft | Soup | Monte |
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| Weight of Debt and Weight of Equity |
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| Shares outstanding (in millions) | |||
| Share price (dollars as of close April 30, 2010) | |||
| Market value equity | |||
| Book value of debt (in millions of dollars) | |||
| Weight of equity | |||
| Weight of debt | |||
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| Cost of Debt |
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| Representative yield on long-term debt | |||
| Tax rate | |||
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| Cost of Equity |
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| Beta | |||
| MRP | |||
| Rf | |||
| Cost of equity | |||
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| WACC |
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
