Calculate BAE System's Cost of Equity (Ke), Cost of Debt (Kd) and Weighted Average Cost of...

 

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Calculate BAE System's Cost of Equity (Ke), Cost of Debt (Kd) and Weighted Average Cost of Capital (WACC) for each year for the last 5 years. Show your workings and state the sources for any of your assumptions A potential investor in BAE Systems has raised concerns that the company has entered the top ten of companies with the highest level of pension scheme contributions relative to their dividends declared in a year. The potential investor is concerned that this may suggest a prioritising of the financial health of the pension scheme over maximising returns to investors. Contributions as a percentage of Name Rank Contributions (Em) Dividends paid (Em) dividends Tesco 1 279 100 279% International Airlines Group 2 881 512 172% Royal Mail Group 3 272 231 118% Royal Bank of Scotland 4 627 583 108% Barclays 5 1,152 1,273 90% BT 6 1,136 1,436 79% Pearson 7 242 318 76% BAE Systems 8 517 692 75% Smiths Group 9 99 167 59% Morrison Supermarkets 10 75 129 58% Source: JLT Quarterly Reports (Jan 2019) The FTSE 100 and their Pension Disclosures Calculate BAE System's Cost of Equity (Ke), Cost of Debt (Kd) and Weighted Average Cost of Capital (WACC) for each year for the last 5 years. Show your workings and state the sources for any of your assumptions A potential investor in BAE Systems has raised concerns that the company has entered the top ten of companies with the highest level of pension scheme contributions relative to their dividends declared in a year. The potential investor is concerned that this may suggest a prioritising of the financial health of the pension scheme over maximising returns to investors. Contributions as a percentage of Name Rank Contributions (Em) Dividends paid (Em) dividends Tesco 1 279 100 279% International Airlines Group 2 881 512 172% Royal Mail Group 3 272 231 118% Royal Bank of Scotland 4 627 583 108% Barclays 5 1,152 1,273 90% BT 6 1,136 1,436 79% Pearson 7 242 318 76% BAE Systems 8 517 692 75% Smiths Group 9 99 167 59% Morrison Supermarkets 10 75 129 58% Source: JLT Quarterly Reports (Jan 2019) The FTSE 100 and their Pension Disclosures