Weighted Average Cost of Capital Analysis of Bendigo Bank

A Brief Note On Weighted Average Cost Of Capital
2014 Words  9 PagesWACC (Weighted Average Cost of Capital) according to AstraZeneca This report will explain what is and how the WACC works and which methods to use for this particular company, AstraZeneca, with relevant data reference. What is WACC ? WACC = E/V x Re + D/V x Rd x (1Tc) “A calculation of a company’s cost of capital in which every source of capital is weighted in proportion to how much capital it contributes to the company”. http://financialdictionary.thefreedictionary.com/WACC WACC is the…

Weighted Average Cost of Capital and Yeats
1737 Words  7 Pagesand TSE want to negotiate a merger deal? Yeats is considering this merger deal because it would offer a succession plan for the company as TSE is a much larger company that can offer Yeats financial stability without having Yeats to identify new capital (debt and equity) on its own to fund the Widening Gyre Program (an advanced hydrauliccontrols system). Yeats needs additional funding in order to continue the R&D of the Widening Gyre Program. Also, TSE has the expertise of mass manufacturing that…

Calculation Of Weighted Average Cost Of Capital
2189 Words  9 PagesPaper Outline The objective of this paper is to understand the process of calculation of weighted average cost of capital(WACC), which is the core multiple used for discounting future cash flows of an entity and calculating the intrinsic value of the company’s stock. However, in this paper, we will solely focus on the calculation of WACC and its component, the costs of equity and cost of debt. In order to work with a pragmatic approach, we have selected Henkel AG, a German conglomerate active in…

Calculating the Weighted Average Cost of Capital
292 Words  1 PagesIn order to calculate the weightedaverage cost of capital, the first step is to identify the total capital, and then place the different elements of the capital structure into either debt or equity, and in this case leases as well. Thus, Microsoft has a total of $3120 million in capital ($950 debt + $20 leases + $500 preferred + $900 common + $750 retained earnings). The preferred, common and retained earnings will all be treated as equity. This gives us the following weightings: 30.4% debt;…

The Weighted Average Cost Of Capital
1987 Words  8 Pagesthe Weighted Average Cost of Capital of AGL Energy Ltd and gearing, as well as analysing the capital structure of the company. Through this, recommendations can be given to the firm to increase and better manage capital and how it is used. The Weighted Average Cost of Capital (WACC) is a calculation of a firm 's cost of capital. It is the average costs of debt and equity financing, each of which is weighted by its proportional use. Body Weighted Average Cost of Capital The Weighted Average Cost…

The Expectations Of The Weighted Average Cost Of Capital
971 Words  4 PagesThe expectations of the weighted average cost of capital (WACC) varies when using market values of equity versus book value of equity because they are fundamentally different when attempting to analyze a business for investment endeavors. Book value and market value can determine if a stock or business venture is a practical one. Book value is simply the value of a business on its books or sometimes known as the accounting value. In comparison, the market value is determined by market investors and…

Weighted Average Cost of Capital
1766 Words  8 Pagescalculations used to determine the weighted average cost of capital (WACC). This SLP calculates the WACC for my SLP company – McDonalds, discusses how those calculations were arrived at and briefly describes WACC and what investors use it for. COMPANY NAME: McDonalds Inc Balance sheet date: 31 DEC 07 Market values date: 1 SEP 08 SOURCE BOOK VALUE MARKET VALUE PROPORTIONS COST (%) PRODUCT (a) (b) (c)…

The Concepts of Weighted Average Cost of Capital and Marginal Cost of Capital
679 Words  3 Pagesbetween the concepts of weighted average cost of capital and marginal cost of capital. We have seen that the weighted average cost of capital is the basis for the 10% discount rate that was used to evaluate the project. The weighted average cost of capital reflects the firm's cost of capital, and that includes both debt and equity. This is a more accurate figure to use in the calculation of a project's value than the marginal cost of capital. The marginal cost of capital is the cost to the firm of an…

Weighted Average Cost of Capital and Common Stock
3754 Words  16 PagesCHAPTER 9 THE COST OF CAPITAL (Difficulty: E = Easy, M = Medium, and T = Tough) Multiple Choice: Problems Easy: Cost of common stock Answer: d Diff: E [i]. Bouchard Company 's stock sells for $20 per share, its last dividend (D0) was $1.00, and its growth rate is a constant 6 percent. What is its cost of common stock, rs? a. 5.0% b. 5.3% c. 11.0% d. 11.3% e. 11.6% Cost of common stock Answer: b Diff: E [ii]. Your company 's stock…

Target Corp. Weighted Average Cost of Capital
2253 Words  10 PagesThe purpose of this memo is to provide Target Corp. senior management with an evaluation of the company’s weighted average cost of capital (WACC). Since the 2010 financial information is not yet to be finalized, the analysis will use the most currently published financial data to evaluate each component of the WACC, including the company financial structure, cost of debt, and cost of equity. I. Target Corp. Financial Structure According to the consolidated balance sheet on January 30, 2010 (exhibit…
More about Weighted Average Cost of Capital Analysis of Bendigo Bank

A Brief Note On Weighted Average Cost Of Capital
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