What kind of info needed

based on the WAAC options choose the best option and apply it to find the debt value, if the company want to repurchase 14000 stocks, for 18.50 $ for each stock. note : company planing to pay part of repurchase value from devt and the rest from Cash and Marketable securities.

2004 67 391 218,403 40,709 47,262 2,586 376,351 2005 70,853 196,763 43,235 49,728 3,871 364,449 2006 66,557 164,309 48.780 54,874 5.157 339,678 54 55 Case Exhibit 56 57 Assets: 58 Cash & Cash Equivalents 59 Marketable Securities 60 Accounts Receivable 61 Inventory 62 Other Current Assets 63 Total Current Assets 64 65 Property. Plant & Equipment 66 Goodwill 67 Other Assets 68 Total Assets 69 70 Liabilities & Shareholders' Equity: 71 Accounts Payable 72 Accrued Liabilities 73 Taxes Payable 74 Total Current Liabilities 75 Other liabilities 76 Deferred Taxes 77 Total Liabilities 78 Shareholders' Equity 79 Total Liabilities & Shareholders' Equity 80 81 99,402 138,546 174321 8,134 20,439 38,281 13,331 27,394 39,973 497,217 550,829 592,253 26,106 28,589 22,605 24,921 14,225 17.196 62,935 70,705 1,794 3,151 13.111 18,434 79,840 92,290 417,377 458,538 497,217 550,829 31,936 27,761 16,884 76,581 4,814 22,495 103,890 488,363 592,253 Revenue EBIT EBITDA Net income (A) Company $342,251 63,946 73,860 $53,630 Cash & securities Net working capital* Net fixed assets Total assets $230,866 32,231 174,321 $592,253 ($230,866) Net debt (1) Total debt Book equity $488,363 Market capitalization Enterprise value (MVIC) 959,596 $728,730 Equity beta 0.56 LTM Trading Multiples MVIC/Revenue MVIC/EBIT MVIC/EBITDA Market/Book equity 2.13x 11.40x 9.87x 1.96 Net Debt/Equity Net Debt/Enterprise Value -24.06% -31.68% B debt/equity 12.80% 16.60% 28.6% 30.80% 35.50% 44.60% D un beta weight of debt 0.74 10.70% 0.74 14.23% 0.74 22.23% 0.74 23.54% 0.74 26.20% 0.74 30.84% E weight of egyit 89.22% 85.76% 77.76% 76.45% 73.80% 69.15% F beta 0.793 0.814 0.867 0.877 0.898 0.938 G CAPAM 9.0% 9.09% 9.35% 9.40% 9.51% 9.7196 H cost of debt 5.88% 6.04% 6.35% 6.72% 7.88% 8.94% 1 WACC 8.40% 8.31% 8.12% 8.14% 8.26% 8.37% marginal tax rate risk free rate market risk premium 40% 5.02% 5% Question: Rr-write Balance sheet After you read the case, you are required to identify the following: Summarize the case with identifying the decision required to be taken. Calculate the different values of WACCs based on the following assumptions: Debt/ Equity Unlesered Bela AAA 12.8% 166% 074 0.74 AA 0.74 BBB . 28.6% 30.89 0.74 BB 0.74 0.74 B- 44.696 Assumptions Marginal Tax Rate Risk-Free Rate Market Risk Premium 40.00% 5.0296 5.001 Re-write the balance sheet and income statement of 2006 after the repurchase. noting that: o The company will repurchase 14,000 shares with a price of $18.5 per share o The company will issue debt to cover part of the repurchase, while the rest will be covered through cash and marketable securities. So you have to identify the amount of debt the company issue based on its Debt/Equity ratio. o The yield on the issued debt, the interest paid, is the bond yield that leads to the lowest WACC in the previous point. . Is stock repurchase beneficial for the company? why? 2004 67 391 218,403 40,709 47,262 2,586 376,351 2005 70,853 196,763 43,235 49,728 3,871 364,449 2006 66,557 164,309 48.780 54,874 5.157 339,678 54 55 Case Exhibit 56 57 Assets: 58 Cash & Cash Equivalents 59 Marketable Securities 60 Accounts Receivable 61 Inventory 62 Other Current Assets 63 Total Current Assets 64 65 Property. Plant & Equipment 66 Goodwill 67 Other Assets 68 Total Assets 69 70 Liabilities & Shareholders' Equity: 71 Accounts Payable 72 Accrued Liabilities 73 Taxes Payable 74 Total Current Liabilities 75 Other liabilities 76 Deferred Taxes 77 Total Liabilities 78 Shareholders' Equity 79 Total Liabilities & Shareholders' Equity 80 81 99,402 138,546 174321 8,134 20,439 38,281 13,331 27,394 39,973 497,217 550,829 592,253 26,106 28,589 22,605 24,921 14,225 17.196 62,935 70,705 1,794 3,151 13.111 18,434 79,840 92,290 417,377 458,538 497,217 550,829 31,936 27,761 16,884 76,581 4,814 22,495 103,890 488,363 592,253 Revenue EBIT EBITDA Net income (A) Company $342,251 63,946 73,860 $53,630 Cash & securities Net working capital* Net fixed assets Total assets $230,866 32,231 174,321 $592,253 ($230,866) Net debt (1) Total debt Book equity $488,363 Market capitalization Enterprise value (MVIC) 959,596 $728,730 Equity beta 0.56 LTM Trading Multiples MVIC/Revenue MVIC/EBIT MVIC/EBITDA Market/Book equity 2.13x 11.40x 9.87x 1.96 Net Debt/Equity Net Debt/Enterprise Value -24.06% -31.68% B debt/equity 12.80% 16.60% 28.6% 30.80% 35.50% 44.60% D un beta weight of debt 0.74 10.70% 0.74 14.23% 0.74 22.23% 0.74 23.54% 0.74 26.20% 0.74 30.84% E weight of egyit 89.22% 85.76% 77.76% 76.45% 73.80% 69.15% F beta 0.793 0.814 0.867 0.877 0.898 0.938 G CAPAM 9.0% 9.09% 9.35% 9.40% 9.51% 9.7196 H cost of debt 5.88% 6.04% 6.35% 6.72% 7.88% 8.94% 1 WACC 8.40% 8.31% 8.12% 8.14% 8.26% 8.37% marginal tax rate risk free rate market risk premium 40% 5.02% 5% Question: Rr-write Balance sheet After you read the case, you are required to identify the following: Summarize the case with identifying the decision required to be taken. Calculate the different values of WACCs based on the following assumptions: Debt/ Equity Unlesered Bela AAA 12.8% 166% 074 0.74 AA 0.74 BBB . 28.6% 30.89 0.74 BB 0.74 0.74 B- 44.696 Assumptions Marginal Tax Rate Risk-Free Rate Market Risk Premium 40.00% 5.0296 5.001 Re-write the balance sheet and income statement of 2006 after the repurchase. noting that: o The company will repurchase 14,000 shares with a price of $18.5 per share o The company will issue debt to cover part of the repurchase, while the rest will be covered through cash and marketable securities. So you have to identify the amount of debt the company issue based on its Debt/Equity ratio. o The yield on the issued debt, the interest paid, is the bond yield that leads to the lowest WACC in the previous point. . Is stock repurchase beneficial for the company? why