WACC CALCULATIONS HELP: These calculations are similar to those your did for Practice Problem 13-9. Also,...

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WACC CALCULATIONS HELP: These calculations are similar to those your did for Practice Problem 13-9. Also, you should see the file named "17-SAMPLE COMPANY WACC CALCULATIONS.pdf" provided to help you setup your spreadsheet for these WACC calculations. INSTRUCTIONS FOR WACC CALCULATION As she headed toward her boss's office, Kim Holland, Chief Financial Officer for the Global Manufacturing, Inc., had just completed her review of the firm's capital structure in 2024 and needs your assistance in determining the firm's Weighted Average Cost of Capital (WACC) for 2024. WACC CALCULATIONS Based on the financial data provided below on the WACC worksheet calculate the following for Global Manufacturing, Inc.: 1) CALCULATE: After-Tax COST (%) of both bonds and common stock. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.168)) 2) CALCULATE: Current Market Values ($) of both bonds and common stock. (Do not include the dollar sign ($) in your answer. Do not round intermediate calculations and round your answer to nearest whole dollar. (e.g., 32, 168)) 3) CALCULATE: Current Market Value WEIGHT (%) of both bonds and common stock. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., .32.168)) 4) CALCULATE: Weighted Average Cost of Capital (WACC) for Global Manufacturing. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.168)) Global Manufacturing, Inc. has two bond issues outstanding. The first bond issue (BOND #1) has a face value (or book value) of $6,391,704 and a coupon rate of 7.35% and sells for 95.10% of PAR value and matures in 15 years. The second issue (BOND #2) has a face value (or book value) of $8,742,827 and a coupon rate of 8.01% and sells for 103.60% of PAR value and matures in 20 years. Both bonds make semiannual payments. The tax rate is 21.00%. Global Manufacturing, Inc. has 3,533,934 shares of common stock outstanding. The current share price is $69.27. Global's most recent dividend was $0.66 and the dividend growth rate is 13.54%. What is Global's Weighted Average Cost of Capital (WACC)? Similar to Practice Problem 13-9. DATA INPUT BOND #1 BOND #2 Face Value (or book value) = $6,391,704 $8,742,827 Coupon rate= 7.35% Bond price (% of PAR) = Term to maturity (years) = 95.1% 8.01% 103.6% SUGGESTION: Copy your worksheet from Practice Problem 13-9 into the CASE STUDY DATA SHEET and then replace the Data Inputs of Problem 13-9 with the CASE STUDY Data Inputs using cell reference formulas. 15 20 Tax rate = 21% 21% ALWAYS USE CELL REFERENCES to the correct values on your worksheets to do your calculations. COMMON STOCK # Shares outstanding= Market value per share= 3,533,934 $69.27 Most recent dividend (D.) - $0.66 Dividend growth rate (g) = 13.54% After-Tax COST (%) Current Market Values Current Market Value (S) WEIGHT (%) BOND #1 0.000% $0 0.000% BOND #2 0.000% $0 0.000% COMMON STOCK 0.000% $0 0.000% Global's Weighted Average Cost of Capital (WACC) = 0.000% WARNING: DO NOT TYPE IN THE WACC VALUE FROM THE CHECK FIGURES HERE. WHEN CALCULATED THIS VALUE WILL HAVE UP TO 26 DECIMAL ACCURACY AND THE CHECK FIGURE VALUE ONLY HAS 5 DECIMAL ACCUARACY SO ALL OF YOUR CAPITAL BUDGETING CALCULATIONS WILL BE INCORRECT. WACC CALCULATIONS HELP: These calculations are similar to those your did for Practice Problem 13-9. Also, you should see the file named "17-SAMPLE COMPANY WACC CALCULATIONS.pdf" provided to help you setup your spreadsheet for these WACC calculations. INSTRUCTIONS FOR WACC CALCULATION As she headed toward her boss's office, Kim Holland, Chief Financial Officer for the Global Manufacturing, Inc., had just completed her review of the firm's capital structure in 2024 and needs your assistance in determining the firm's Weighted Average Cost of Capital (WACC) for 2024. WACC CALCULATIONS Based on the financial data provided below on the WACC worksheet calculate the following for Global Manufacturing, Inc.: 1) CALCULATE: After-Tax COST (%) of both bonds and common stock. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.168)) 2) CALCULATE: Current Market Values ($) of both bonds and common stock. (Do not include the dollar sign ($) in your answer. Do not round intermediate calculations and round your answer to nearest whole dollar. (e.g., 32, 168)) 3) CALCULATE: Current Market Value WEIGHT (%) of both bonds and common stock. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., .32.168)) 4) CALCULATE: Weighted Average Cost of Capital (WACC) for Global Manufacturing. (Do not include the percent sign (%) in your answer. Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.168)) Global Manufacturing, Inc. has two bond issues outstanding. The first bond issue (BOND #1) has a face value (or book value) of $6,391,704 and a coupon rate of 7.35% and sells for 95.10% of PAR value and matures in 15 years. The second issue (BOND #2) has a face value (or book value) of $8,742,827 and a coupon rate of 8.01% and sells for 103.60% of PAR value and matures in 20 years. Both bonds make semiannual payments. The tax rate is 21.00%. Global Manufacturing, Inc. has 3,533,934 shares of common stock outstanding. The current share price is $69.27. Global's most recent dividend was $0.66 and the dividend growth rate is 13.54%. What is Global's Weighted Average Cost of Capital (WACC)? Similar to Practice Problem 13-9. DATA INPUT BOND #1 BOND #2 Face Value (or book value) = $6,391,704 $8,742,827 Coupon rate= 7.35% Bond price (% of PAR) = Term to maturity (years) = 95.1% 8.01% 103.6% SUGGESTION: Copy your worksheet from Practice Problem 13-9 into the CASE STUDY DATA SHEET and then replace the Data Inputs of Problem 13-9 with the CASE STUDY Data Inputs using cell reference formulas. 15 20 Tax rate = 21% 21% ALWAYS USE CELL REFERENCES to the correct values on your worksheets to do your calculations. COMMON STOCK # Shares outstanding= Market value per share= 3,533,934 $69.27 Most recent dividend (D.) - $0.66 Dividend growth rate (g) = 13.54% After-Tax COST (%) Current Market Values Current Market Value (S) WEIGHT (%) BOND #1 0.000% $0 0.000% BOND #2 0.000% $0 0.000% COMMON STOCK 0.000% $0 0.000% Global's Weighted Average Cost of Capital (WACC) = 0.000% WARNING: DO NOT TYPE IN THE WACC VALUE FROM THE CHECK FIGURES HERE. WHEN CALCULATED THIS VALUE WILL HAVE UP TO 26 DECIMAL ACCURACY AND THE CHECK FIGURE VALUE ONLY HAS 5 DECIMAL ACCUARACY SO ALL OF YOUR CAPITAL BUDGETING CALCULATIONS WILL BE INCORRECT.