using the attached data please calculate the Weighted average cost of capital. Revenue Costs of goods sold Gross profit SG&A expense Operating income Interest expense Other income (expense) Income before taxes Income taxes Net income after taxes Adjustments to net income Net income Diluted EPS Dividends per share 2008 9,885,556 6,233,420 3,652,136 2,081,801 1,570,335 323,289 (16,283) 1,230,763 372.587 858,176 (13,251) 844,925 2.61 1.52 Average Historic Yields 1-year 5-year 10-year 2009 10,011,331 6,442,075 3,569,256 2,066,810 1,502,446 275,485 92,922 1,319,883 375,483 944,400 (21,328) 923,072 2.89 1.66 1.21% 2010 10,494,983 6,700,677 3,794,306 2,235,078 1,559,228 250,574 (18,200) 1,290,454 358,514 931,940 30-year Moody's Aaa Moody's Baa 3-month commercial paper Heinz Capital Market Prices of Typical Issues (67,048) 864,892 2003 2004 2005 2006 1.22% 1.55% 3.33% 4.98% 2.85% 3.63% 3.90% 4.92% 3.89% 4.53% 4.21% 5.07% 2.71 1.68 4.79% 5.31% 4.61% 5.17% 5.53% 5.87% 5.21% 5.95% 6.65% 6.58% 5.97% 6.74% 1.08% 2.97% 4.90% Note that bond data were slightly modified for teaching purposes. Data sources Federal Reserve, Value Line, Momingstar, and author estimates. Cash Net receivables Inventories Other current assets Total curent assets Heinz stock price Bond price: 6.750% coupon, semiannual bond due 3/15/32 (Baa rated) Bond price: 6.625% coupon, semiannual bond due 10/15/12 (Baa rated) Net fixed assets Other noncurent assets Total assets Accounts payable Short-term debt Current portion of long-term debe Other current liabilities Total curent liabilities Long-team debt Other noncurent liabilities. Equity Total liabilities and equity 5,22% Shares outstanding (in millions) 2007 2008 2009 2010 4.89% 1.85% 0.49% 0.41% 4.51% 3.03% 2.02% 2.43% 4.63% 3,77% 3.16% 3.69% 4.89% 4.49% 4.05% 4.53% 5.40% 5.51% 5.45% 5.13% 6.31% 6,87% 8.24% 6.07% 1.91% 0.22% 0.24% 2009 2010 $34.42 $46.87 91.4 116.9 116.5 113,7 2008 617,687 1,161,481 1,378,216 168,182 3,325,566 2,104,713 5,134,764 10.565.043 1,247,479 124,290 328,418 969,873 2,670,060 4,730,946 1,276,217 6,007,163 1,887,820 10,565,043 311.45 2009 373,145 1,171,797 1,237,613 162,466 2,945,021 1,978,302 4,740,861 9,664,184 1,113,307 61,297 4,341 883,901 2,062,846 5,076,186 1,246,047 6,322,233 1,279,105 9,664,184 314.86 2010 483,253 1,045,338 1,249,127 273,407 3,051,125 2,091,796 4,932,790 10,075,711 1,129,514 43,853 15,167 986,825 2,175,359 4,559,152 1,392,704 5,951,856 1,948,496 10,075,711 317.69

using the attached data please calculate the Weighted average cost of capital. Revenue Costs of goods sold Gross profit SG&A expense Operating income Interest expense Other income (expense) Income before taxes Income taxes Net income after taxes Adjustments to net income Net income Diluted EPS Dividends per share 2008 9,885,556 6,233,420 3,652,136 2,081,801 1,570,335 323,289 (16,283) 1,230,763 372.587 858,176 (13,251) 844,925 2.61 1.52 Average Historic Yields 1-year 5-year 10-year 2009 10,011,331 6,442,075 3,569,256 2,066,810 1,502,446 275,485 92,922 1,319,883 375,483 944,400 (21,328) 923,072 2.89 1.66 1.21% 2010 10,494,983 6,700,677 3,794,306 2,235,078 1,559,228 250,574 (18,200) 1,290,454 358,514 931,940 30-year Moody's Aaa Moody's Baa 3-month commercial paper Heinz Capital Market Prices of Typical Issues (67,048) 864,892 2003 2004 2005 2006 1.22% 1.55% 3.33% 4.98% 2.85% 3.63% 3.90% 4.92% 3.89% 4.53% 4.21% 5.07% 2.71 1.68 4.79% 5.31% 4.61% 5.17% 5.53% 5.87% 5.21% 5.95% 6.65% 6.58% 5.97% 6.74% 1.08% 2.97% 4.90% Note that bond data were slightly modified for teaching purposes. Data sources Federal Reserve, Value Line, Momingstar, and author estimates. Cash Net receivables Inventories Other current assets Total curent assets Heinz stock price Bond price: 6.750% coupon, semiannual bond due 3/15/32 (Baa rated) Bond price: 6.625% coupon, semiannual bond due 10/15/12 (Baa rated) Net fixed assets Other noncurent assets Total assets Accounts payable Short-term debt Current portion of long-term debe Other current liabilities Total curent liabilities Long-team debt Other noncurent liabilities. Equity Total liabilities and equity 5,22% Shares outstanding (in millions) 2007 2008 2009 2010 4.89% 1.85% 0.49% 0.41% 4.51% 3.03% 2.02% 2.43% 4.63% 3,77% 3.16% 3.69% 4.89% 4.49% 4.05% 4.53% 5.40% 5.51% 5.45% 5.13% 6.31% 6,87% 8.24% 6.07% 1.91% 0.22% 0.24% 2009 2010 $34.42 $46.87 91.4 116.9 116.5 113,7 2008 617,687 1,161,481 1,378,216 168,182 3,325,566 2,104,713 5,134,764 10.565.043 1,247,479 124,290 328,418 969,873 2,670,060 4,730,946 1,276,217 6,007,163 1,887,820 10,565,043 311.45 2009 373,145 1,171,797 1,237,613 162,466 2,945,021 1,978,302 4,740,861 9,664,184 1,113,307 61,297 4,341 883,901 2,062,846 5,076,186 1,246,047 6,322,233 1,279,105 9,664,184 314.86 2010 483,253 1,045,338 1,249,127 273,407 3,051,125 2,091,796 4,932,790 10,075,711 1,129,514 43,853 15,167 986,825 2,175,359 4,559,152 1,392,704 5,951,856 1,948,496 10,075,711 317.69

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

See similar textbooks