Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What was the WACC for Heinz at the start of fiscal year 2010? What was the WACC one year earlier? Income Statement of Heinz Balance

What was the WACC for Heinz at the start of fiscal year 2010? What was the WACC one year earlier?

Income Statement of Heinz Balance sheet of Heinz
2009 2010 2009 2010
Revenue 10,011,331 10,494,983 Cash 373,145 483,253
Cost of goods sold 6,442,075 6,700,677 Net Receivable 1,171,797 1,045,338
Gross profit 3,569,256 3,794,306 Inventories 1,237,613 1,249,127
other current assets 162,466 273,407
SG&A expenses 2,066,810 2,235,078 total current assets 2,945,021 3,051,125
Operating income 1,502,446 1,559,228
net fixed assets 1,978,302 2,091,796
Interest Expenses 275,485 250,574 other non current assets 4,740,861 4,932,790
Other income (expense) 92,922 -18,200 total assets 9,664,184 10,075,711
Income befor taxes 1,319,883 1,290,454
account payable 1,113,307 1,129,514
Income taxes 375,483 358,514 short-term debt 61,297 43,853
Net income after taxes 944,400 931,940

current portion of long-term debt

4,341 15,167
other current liabilities 883,901 986,825
Adjustments to net income -21,328 -67,048 total current liabilities 2,062,846 2,175,359
Net income 923,072 864,892
long-term debt 5,076,186 4,559,152
Diluated EPS 2.89 2.71 other noncurrent liabilities 1,246,047 1,392,704
Dividends per share 1.66 1.68 6,322,233 5,951,856
equity 1,279,105 1,948,469
TAX 28.4% 27.8% total liabilities and equity 9,664,184 10,075,711
shares outstanding (million) 314.86 317.69

Capital Market Data

Average historical yeilds 2003 2004 2005 2006 2007 2008 2009 2010
1 year 1.22% 1.55% 3.33% 4.98% 4.89% 1.85% 0.49% 0.41%
5 year 2.85% 3.63% 3.90% 4.92% 4.51% 3.03% 2.02% 2.34%
10 year 3.89% 4.53% 4.21% 5.07% 4.63% 3.77% 3.16% 3.69%
30 year 4.79% 5.31% 4.61% 5.17% 4.89% 4.49% 4.05% 4.53%
Moody's Aaa 5.53% 5.87% 5.21% 5.95% 5.40% 5.51% 5.45% 5.13%
Moody's Baa 6.65% 6.58% 5.97% 6.74% 6.31% 6.87% 8.24% 6.07%
3-months commercial paper 1.21% 1.08% 2.97% 4.90% 5.22% 1.91% 0.22% 0.24%

Kraft Campbell soup Del Monte
Fanacial Summary
Revenue ( Million) 40,386 7,589 3,739
Book value of equity (Million) 25,972 7280 1,827
Book value of debt (Million) 18,990 2,624 1,290
Market Data
Beta 0.65 0.55 0.70
Shares outstanding (Milion) 1,735 363 182
Share price ( dollars as of April 30,2010) 29.9 35.64 15.11
Typical Standard & Poor's bond rating BBB- A BB
Represantative yeild on long-term debt 5.12% 4.36% 6.19%

please note that the face value is given by to be 1000. i need the weight of debt and equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tidy Finance With R

Authors: Christoph Scheuch, Stefan Voigt, Patrick Weiss

1st Edition

1032389346, 978-1032389349

More Books

Students also viewed these Finance questions