Hello. I'd like the functions in order to calculate the following myself. I am attaching the numbers I have for Ecolab but I am not sure if it contains what I need in order to solve this so if at least I can get the formulas then I can figure it out before-tax and after-tax component cost of debt; (Note: Use 21 % tax rate for your chosen corporation). component cost of preferred stock if the company uses preferred stocks in its capital structure; three approaches (CAPM, DCF, bond-yield-plus-risk-premium) to estimate the component cost of common equity of the firm. Then assign a weight for each method and estimate weighted average cost of equity. Using this average: - Calculate the firm’s weighted average cost of capital (WACC) using market-based capital weights. - Calculate the firm’s weighted average cost of capital (WACC) using book-based capital weights. - Calculate the firm’s weighted average cost of capital (WACC) using optimal capital structure weights   Ecolab Inc (NYS: ECL)       Exchange rate used is that of the Year End reported date            As Reported Annual Balance Sheet    Report Date 12/31/2018 Currency USD Audit Status Not Available Consolidated Yes Scale Thousands Cash & cash equivalents 114700 Short-term investments  - Accounts receivable, gross 2723100 Allowance for doubtful accounts 60600 Accounts receivable, net 2662500 Finished goods 1016900 Raw materials & parts 525600 Inventories at first-in, first-out ("FIFO") cost 1542500 Excess of FIFO cost over last-in, first-out cost -3900 Inventories 1546400 Deferred income taxes - Prepaid expenses & other current assets - Prepaid assets 132100 Derivative assets 42800 Other current assets 35000 Other current assets 354100 Total current assets 4677700 Taxes receivable 144200 Land 214500 Buildings & improvements - Buildings & leasehold improvements 1279400 Leasehold improvements - Buildings & leaseholds - Machinery & equipment 2313700 Merchandising equipment - Merchandising & customer equipment 2565500 Capitalized software 666200 Construction in progress 400200 Property, plant & equipment, gross 7439500 Accumulated depreciation 3603500 Property, plant & equipment, net 3836000 Investment in Henkel-Ecolab joint venture - Net assets of Ecolab Europe - Net assets of Ecolab Inc. & discontinued operations - Goodwill 7078000 Other intangible assets, net 3797700 Other assets, net - Intangible assets, net - Deferred income taxes 105100 Deferred financing costs - Pension 39000 Derivative assets 11800 Restricted cash 179300 Sole supply fees - Other assets 349900 Other assets 685100 Total assets 20074500 Commercial paper 165400 Notes payable 176800 Long-term debt, current maturities 401400 Short-term debt 743600 Accounts payable 1255600 Compensation & benefits 579700 Property, payroll & other taxes - Other accrued expenses - Dividends payable - Income taxes 100600 Other current liabilities - Discounts & rebates 291300 Dividends payable 132400 Interest payable 44500 Taxes payable, other than income 116900 Derivative liabilities 20100 Foreign exchange contracts - Restructuring 73700 Contract liability 75800 Future consideration payable to Champion sellers - Other current liabilities 251400 Other current liabilities 1006100 Total current liabilities 3685600 Senior notes 6447400 Series A & B senior notes 249400 Notes - Capital lease obligations 6200 Euro notes - Commercial paper - Medium-term notes - Multicurrency credit agreement - Other long-term debt - Total debt 6703000 Long-term debt, current maturities 401400 Long-term debt 6301600 Postretirement health care & pension benefits 944300 Deferred income taxes 764600 Deferred income taxes - Income taxes payable - noncurrent - Restructuring - Other liabilities - Other liabilities 324800 Other liabilities - Series A cumulative perferred stock - Total liabilities 12020900 Common stock 357000 Additional paid-in capital 5633200 Retained earnings 8909500 Deferred compensation - Cumulative translation - Unrealized gain (loss) on derivative financial instruments, net of tax 2000 Unrecognized pension & postretirement benefit expense, net of tax -518900 Cumulative translation, net of tax -1244800 Accumulated other comprehensive income (loss) -1761700 Treasury stock 5134800 Total Ecolab, Inc. shareholders' equity 8003200 Noncontrolling interest 50400 Total equity 8053600

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Hello. I'd like the functions in order to calculate the following myself. I am attaching the numbers I have for Ecolab but I am not sure if it contains what I need in order to solve this so if at least I can get the formulas then I can figure it out

  • before-tax and after-tax component cost of debt; (Note: Use 21 % tax rate for your chosen corporation).
  • component cost of preferred stock if the company uses preferred stocks in its capital structure;
  • three approaches (CAPM, DCF, bond-yield-plus-risk-premium) to estimate the component cost of common equity of the firm. Then assign a weight for each method and estimate weighted average cost of equity. Using this average:

- Calculate the firm’s weighted average cost of capital (WACC) using market-based capital weights.

- Calculate the firm’s weighted average cost of capital (WACC) using book-based capital weights.

- Calculate the firm’s weighted average cost of capital (WACC) using optimal capital structure weights

 

Ecolab Inc (NYS: ECL)  
   
Exchange rate used is that of the Year End reported date   
   
   
As Reported Annual Balance Sheet   
Report Date 12/31/2018
Currency USD
Audit Status Not Available
Consolidated Yes
Scale Thousands
Cash & cash equivalents 114700
Short-term investments  -
Accounts receivable, gross 2723100
Allowance for doubtful accounts 60600
Accounts receivable, net 2662500
Finished goods 1016900
Raw materials & parts 525600
Inventories at first-in, first-out ("FIFO") cost 1542500
Excess of FIFO cost over last-in, first-out cost -3900
Inventories 1546400
Deferred income taxes -
Prepaid expenses & other current assets -
Prepaid assets 132100
Derivative assets 42800
Other current assets 35000
Other current assets 354100
Total current assets 4677700
Taxes receivable 144200
Land 214500
Buildings & improvements -
Buildings & leasehold improvements 1279400
Leasehold improvements -
Buildings & leaseholds -
Machinery & equipment 2313700
Merchandising equipment -
Merchandising & customer equipment 2565500
Capitalized software 666200
Construction in progress 400200
Property, plant & equipment, gross 7439500
Accumulated depreciation 3603500
Property, plant & equipment, net 3836000
Investment in Henkel-Ecolab joint venture -
Net assets of Ecolab Europe -
Net assets of Ecolab Inc. & discontinued operations -
Goodwill 7078000
Other intangible assets, net 3797700
Other assets, net -
Intangible assets, net -
Deferred income taxes 105100
Deferred financing costs -
Pension 39000
Derivative assets 11800
Restricted cash 179300
Sole supply fees -
Other assets 349900
Other assets 685100
Total assets 20074500
Commercial paper 165400
Notes payable 176800
Long-term debt, current maturities 401400
Short-term debt 743600
Accounts payable 1255600
Compensation & benefits 579700
Property, payroll & other taxes -
Other accrued expenses -
Dividends payable -
Income taxes 100600
Other current liabilities -
Discounts & rebates 291300
Dividends payable 132400
Interest payable 44500
Taxes payable, other than income 116900
Derivative liabilities 20100
Foreign exchange contracts -
Restructuring 73700
Contract liability 75800
Future consideration payable to Champion sellers -
Other current liabilities 251400
Other current liabilities 1006100
Total current liabilities 3685600
Senior notes 6447400
Series A & B senior notes 249400
Notes -
Capital lease obligations 6200
Euro notes -
Commercial paper -
Medium-term notes -
Multicurrency credit agreement -
Other long-term debt -
Total debt 6703000
Long-term debt, current maturities 401400
Long-term debt 6301600
Postretirement health care & pension benefits 944300
Deferred income taxes 764600
Deferred income taxes -
Income taxes payable - noncurrent -
Restructuring -
Other liabilities -
Other liabilities 324800
Other liabilities -
Series A cumulative perferred stock -
Total liabilities 12020900
Common stock 357000
Additional paid-in capital 5633200
Retained earnings 8909500
Deferred compensation -
Cumulative translation -
Unrealized gain (loss) on derivative financial instruments, net of tax 2000
Unrecognized pension & postretirement benefit expense, net of tax -518900
Cumulative translation, net of tax -1244800
Accumulated other comprehensive income (loss) -1761700
Treasury stock 5134800
Total Ecolab, Inc. shareholders' equity 8003200
Noncontrolling interest 50400
Total equity 8053600

 

 

 

 

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