| Group Names; | Nour Abdulaziz |
| Q3) Weights of Equity and Debt; | Maryam Barifah |
| Current Share Price; | $42.09 | Shrouq Al-Jaaidi |
| Current Shares Outstanding; | 271.5 m | Balquis Mekhlafi |
| Current portion of Long-term Debt; | $54.4 m |
| Notes Payable; | $855.3 m |
| Long-term Debt; | $435.9 m |
| Market Value of Equity= | Current share price * Current shares outstanding |
| $42.09*271m |
| $11,457.44 million |
| Market Value of Debt= | Current portion of long-term debt + Notes Payable + Long-Term Debt |
| $5.4m + $855.3m + $435.9 m |
| $1,296.6 million |
| We = | Market value of equity/ (MVE + MVD) |
| $11,457.44m / ($11,427.44m + $1,296.6m) |
| 89.81% |
| Wd = | MVD / (MVE + MVD) |
| $1,296.6m / ($11,427.44m + $1,296.6m) |
| 10.19% |
| After Tax Cost of Debt; |
| Current Price= | $95.60 |
| Issued Date= | 7/15/96 |
| Maturity Date= | 7/15/21 |
| Coupon Rate (Semi Annual)= | 6.75% |
| PMT | 3.375 |
| PAR Value= | $100 |
| N for 5 years= | 40 |
| Rate (Semi Annual)= | 3.58% |
| Rate (Annual)= | 7.16% |
| After Tax Cost Of Debt= | 4.439% |
| Cost of Equity; |
| Risk Free Rate= | 5.74% |
| Market Risk Premium= | 5.90% |
| Beta= | 0.69 |
| Re= Rf+B *( Market Risk Premium) | 5.74+0.69(5.90%) |
| 9.811% |
| WACC |
| Wd= | 10.19% |
| Rd= | 7.16% |
| Tax Rate= | 38% |
| We= | 89.81% |
| Re= | 9.81% |
| WACC= | Wd x Rd x (1-T) + We x Re |
| 10.19% x 7.16% x (1-38%) + 89.81% x9.811% |
| 9.264% |
Tuleenhb
excelsample.xlsx
