Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate the WACC for the company by using the capital Structure value from the balance sheet.
Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate the WACC for the company by using the capital Structure value from the balance sheet.
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
Problem 1PS
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Transcribed Image Text:Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate
the WACC for the company by using the capital Structure value from the balance
sheet.
Use the format below to answer your question.
Capital Structure
1.Common Stock
2.Preferred Stock
3.Loans / LT debt /Bond
4.Retained Earnings
Total
ASSETS
Current Assets
Cash and Cash Equivalents
Accounts Receivable
Inventory
Prepaid Expenses
Investment
Total Current Assets
Amount in Balance Sheet
Calculate the WACC:
Balance Sheet of GoodWorld Incorporated Company
Good World Incorporated
Balance Sheet
31-Dec-22
Property & Equipment
Land
Buildings
Equipment
Less: Accumulated Depreciation
Other Assets
Intangible Assets
Less: Accumulated Amortization
Total Assets
$'000
200,000
30,000
20,000
10,000
20,000
280,000
120,000
450,000
100,000
-30,000
40,000
-10,000
Cost
950,000
12%
10%
14%
12%
Proposition
LIABILITIES & SHAREHOLDERS EQUITY
Current Liabilities
Accounts Payable
Notes Payables
Accrued Expenses
Deferred Revenue
Total Current Assets
Long-Term Debt
Total Liabilities
Average Cost of Cap-
ACOC
Shareholders Equity
Common Stock
Preferred Stock
Retained Earnings
Total Liabilities & Shareholders Equity
$'000
70,000
60,000
25,000
15,000
170,000
300,000
470,000
290,000
110,000
80,000
950,000
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