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Homework Help - Q&A from Onl x manbe HW9 (Module 12) X + X C a mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt=4266695&cmid=241406&page=1 G a . .. The December 31, 2007, partial bala ment from Colgate-Palmolive Company (CL) follow ($ millions, BusinessCo except per share amounts). The website Finance.Yahoo.com reported that the total market capitalization of Colgate-Palmolive was $38.53 billion and its stock price was $75.69 as of December 31, 2007. Also, Yahoo estimates its total enterprise value at $42.49 billion, and its market beta at 0.46. In addition, Colgate Palmolive's average pretax borrowing cost is 5.20%, and its marginal tax rate is 35%. Assume that the risk-free rate equals 5.20% and Print 2 sheets of paper abdul Saqib Other accruals the market premium equals 5.60%. Total current liabil Notes and loans payable $ 155.9 Destination Long-term debt Current portion of long-term debt 138.1 Microsoft Print to PDF Accounts payable 1,066.8 Deferred income t Accrued income taxes 262.7 Other accruals 1,539.2 Total current liabilities 3,162.7 Other liabilities Long-term debt 3,171.9 Pages All Deferred income taxes 264.1 Total liabilities Other liabilities 1,177.1 Total liabilities 7,775.8 Shareholders' Equ Shareholders' Equity Preferred stock 1975 Preferred stock Common stock, $1 par value (1,000,000,000 shareauthorized, 732,853,180 shares issued) 732.9 Color Color Additional paid-in capital 1,517.7 Common stock, $1 Retained earnings 10,6275 Accumulated other comprehensive income (1,666.8) 11,408.8 Additional paid-in Unearned compensation (218.9) Treasury stock, at cost (8.903.7) More settings Retained earnings Total shareholders' equity 2,286.2 Total liabilities and shareholders' equity $10,062.0 Accumulated othe mon Shares Outstand Balance, December 31, 2006 512,658,587 Shares issued for stock options 10,051,559 Paper size B5 (JIS) Treasury stock acquired (18,062,892) Support Unearned comper Other 4,387,547 Balance, December 31, 2007 509,034,801 Treasury stock, at (a) Verify Yahoo's computation of Colgate-Palmolive's market capitalization using the data from its financial report excerpts above. (Round your answer to two decimal places.) Pages per sheet 1 Total shareholders Market capitalization = $ 78.43 x x 509,034,801 . shares = $ 39.92 x billion Total liabilities and (b) Compute the book value of Colgate-Palmolive's long-term debt as of December 31, 2007. 3,410 x million Margins Default Common Shares Balance, Decembe (c) Compute the market value of Colgate-Palmolive's debt using the data from Yahoo. (Round your answer to two decimal places.) $ 2.57 x billion Shares issued for (d) Identify reasons behind the difference between the amounts computed in parts (b) and (c). (Select all that apply.) Scale Default Treasury stock acc yes Yahoo.Finance.com might include other liabilities, such as lease obligations, in the calculation of debt. Other yes * The market value of debt doesn't include the issuing of new treasury stock. yes The market price of Colgate- ed in value on December 31, 2007. Balance, Decembe yes The market value and book value ting usage of historical cost. (a) Verify Yahoo Print Cancel (e) Compute Colgate Palmolive's cost of debt capital. (Round your answer to one decimal place.) ecimal 0 places.) Type here to search O X w 12:14 PM 11/4/2020Homework Help - Q&A from Onl x abc HW9 (Module 12) X + X C a mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt=4266695&cmid=241406&page=1 G a . .. (f) Compute Colgate Palmolive's cost of equity capital. (Round your answer to one decimal place.) BusinessCo Print 2 sheets of paper abdul Saqib Other accruals Total current liabil 8.1 x 9% Destination Microsoft Print to PDF Long-term debt (g) Using your rounded answer from (e) and (f) above, compute Colgate Palmolive's weighted average cost of capital. Use the market capitalization Deferred income t from Ycharts.com and your rounded answer from (c) above for this calculation (Do not round until your final answer. Round answer to one decimal place.) Other liabilities 7.8 x 9% Pages All Total liabilities Partially correct Marks for this submission: 3.33/10.00. Shareholders' Equ Color Color Preferred stock Common stock, $1 Additional paid-in More settings Retained earnings Accumulated othe Paper size B5 (JIS) Support Unearned comper Treasury stock, at Pages per sheet 1 Total shareholders Total liabilities and Margins Default Common Shares Balance, Decembe Shares issued for Scale Default Treasury stock acc Other Balance, Decembe Print Cancel (a) Verify Yahoo ecimal places.) Type here to search X w 12:14 PM 11/4/2020