Question: Excel picture with data attached. Please show relevant work. 1. Using the Gordon formula, find the WACC for Colgate-Palmolive Company at the end of 2010.

Excel picture with data attached. Please show relevant work.Excel picture with data attached. Please show relevant work. 1. Using the

1. Using the Gordon formula, find the WACC for Colgate-Palmolive Company at the end of 2010. Make any needed assumptions at your discretion.

2. Using the CF to equity method, find the WACC for Colgate-PalmoliveCompany at the end of 2010. Make any needed assumptions at your discretion.

3. Using the CAPM, find the WACC for Colgate-Palmolive Company at the end of 2010. Make any needed assumptions at your discretion.

A1 fx Consolidated Statements of Income (USD $) A B D E F G H I J K L 1 Consolidated Statements of Income (USD $) $15,330 (1) 6,704 (1) 8,626 [1] $13,790 [1] 6,043 [1] 7,747 [1] 4,973 (1) 103 (1) 3,101 [1] 12 Months Ended 12 Months Ended 12 Months Ended Dec. 31, 2009 Dec. 31, 2008 2 Dec. 31, 2007 In Millions, except Per Share data 3 Income Statement 4 Net sales $15,327 5 Cost of sales 6,319 6 Gross profit 9,008 7 Selling, general and administrative expenses 5,282 [1] 5,422 8 Other (income) expense, net 111 9 Operating profit 54 [1] 3,615 10 Interest expense, net 77 11 Income before income taxes 3,538 3,005 [1] 12 Provision for income taxes 1,141 968 [1] 13 Net income including noncontrolling interests 2,397 2,037 [1] 14 Less: Net income attributable to noncontrolling interests 106 67 [1] 15 Net income $2,291 $1,957 [1] $1,737 16 Earnings per common share, basic $4.53 17 Earnings per common share, diluted $4.37 18 [1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. 19 96 (1) 2,720 [1] 157 [1] 2,563 [1] 759 [1] 1,804 (1) 80 (1) $3.81 [1] $3.66 [1] $3.35 [1] $3.2 [1] A1 fx Consolidated Statements of Income (USD $) A B D E F G H I J K L 1 Consolidated Statements of Income (USD $) $15,330 (1) 6,704 (1) 8,626 [1] $13,790 [1] 6,043 [1] 7,747 [1] 4,973 (1) 103 (1) 3,101 [1] 12 Months Ended 12 Months Ended 12 Months Ended Dec. 31, 2009 Dec. 31, 2008 2 Dec. 31, 2007 In Millions, except Per Share data 3 Income Statement 4 Net sales $15,327 5 Cost of sales 6,319 6 Gross profit 9,008 7 Selling, general and administrative expenses 5,282 [1] 5,422 8 Other (income) expense, net 111 9 Operating profit 54 [1] 3,615 10 Interest expense, net 77 11 Income before income taxes 3,538 3,005 [1] 12 Provision for income taxes 1,141 968 [1] 13 Net income including noncontrolling interests 2,397 2,037 [1] 14 Less: Net income attributable to noncontrolling interests 106 67 [1] 15 Net income $2,291 $1,957 [1] $1,737 16 Earnings per common share, basic $4.53 17 Earnings per common share, diluted $4.37 18 [1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. 19 96 (1) 2,720 [1] 157 [1] 2,563 [1] 759 [1] 1,804 (1) 80 (1) $3.81 [1] $3.66 [1] $3.35 [1] $3.2 [1]

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