Professional paper 2
Jai91
PA2Practice.xlsxDebt
| Interest expense | 723,000 | Income before tax | 11,342,000 | |
| Long-term Debt | 35,605,000 | in thousands | Income tax | 2,619,000 |
| Before tax cost of debt | 2.03% | Tax rate | 23.09% | |
| After tax cost of debt | 1.56% | |||
Equity
| Date | S&P Adj close | IBM Adj Close | S &P monthly reurn | IBM monthly return | |||||
| 3/1/14 | 1872.339966 | 157.73082 | |||||||
| 4/1/14 | 1883.949951 | 160.992111 | 0.62% | 2.07% | Beta | 1.194 | Math | 1.194 | |
| 5/1/14 | 1923.569946 | 151.068863 | 2.10% | -6.16% | Market annual average | 8.49% | |||
| 6/1/14 | 1960.22998 | 149.401718 | 1.91% | -1.10% | Risk free rate | 2.373% | |||
| 7/1/14 | 1930.670044 | 157.973312 | -1.51% | 5.74% | Cost of equity(CAPM) | 9.68% | |||
| 8/1/14 | 2003.369995 | 158.492554 | 3.77% | 0.33% | |||||
| 9/1/14 | 1972.290039 | 157.382065 | -1.55% | -0.70% | Market cap | 124.977 | Billion | ||
| 10/1/14 | 2018.050049 | 136.298859 | 2.32% | -13.40% | Long-term Debt | 35.605 | |||
| 11/1/14 | 2067.560059 | 134.450058 | 2.45% | -1.36% | Total value | 160.582 | |||
| 12/1/14 | 2058.899902 | 133.926178 | -0.42% | -0.39% | Weight of equity | 77.83% | |||
| 1/1/15 | 1994.98999 | 127.974457 | -3.10% | -4.44% | Weight of debt | 22.17% | |||
| 2/1/15 | 2104.5 | 135.178268 | 5.49% | 5.63% | |||||
| 3/1/15 | 2067.889893 | 134.916016 | -1.74% | -0.19% | |||||
| 4/1/15 | 2085.51001 | 143.986115 | 0.85% | 6.72% | |||||
| 5/1/15 | 2107.389893 | 142.607513 | 1.05% | -0.96% | ( | ||||
| 6/1/15 | 2063.110107 | 138.82782 | -2.10% | -2.65% | |||||
| 7/1/15 | 2103.840088 | 138.256012 | 1.97% | -0.41% | |||||
| 8/1/15 | 1972.180054 | 126.221855 | -6.26% | -8.70% | |||||
| 9/1/15 | 1920.030029 | 124.756805 | -2.64% | -1.16% | |||||
| 10/1/15 | 2079.360107 | 120.548607 | 8.30% | -3.37% | |||||
| 11/1/15 | 2080.409912 | 119.980644 | 0.05% | -0.47% | |||||
| 12/1/15 | 2043.939941 | 119.542542 | -1.75% | -0.37% | |||||
| 1/1/16 | 1940.23999 | 108.397858 | -5.07% | -9.32% | |||||
| 2/1/16 | 1932.22998 | 113.818184 | -0.41% | 5.00% | |||||
| 3/1/16 | 2059.73999 | 132.899643 | 6.60% | 16.76% | |||||
| 4/1/16 | 2065.300049 | 128.064499 | 0.27% | -3.64% | |||||
| 5/1/16 | 2096.949951 | 134.90918 | 1.53% | 5.34% | |||||
| 6/1/16 | 2098.860107 | 135.764999 | 0.09% | 0.63% | |||||
| 7/1/16 | 2173.600098 | 143.672226 | 3.56% | 5.82% | |||||
| 8/1/16 | 2170.949951 | 142.115845 | -0.12% | -1.08% | |||||
| 9/1/16 | 2168.27002 | 143.316193 | -0.12% | 0.84% | |||||
| 10/1/16 | 2126.149902 | 138.660767 | -1.94% | -3.25% | |||||
| 11/1/16 | 2198.810059 | 146.356644 | 3.42% | 5.55% | |||||
| 12/1/16 | 2238.830078 | 151.116608 | 1.82% | 3.25% | |||||
| 1/1/17 | 2278.870117 | 158.882263 | 1.79% | 5.14% | |||||
| 2/1/17 | 2363.639893 | 163.707352 | 3.72% | 3.04% | |||||
| 3/1/17 | 2362.719971 | 159.789825 | -0.04% | -2.39% | |||||
| 4/1/17 | 2384.199951 | 147.081146 | 0.91% | -7.95% | |||||
| 5/1/17 | 2411.800049 | 140.052414 | 1.16% | -4.78% | |||||
| 6/1/17 | 2423.409912 | 142.53241 | 0.48% | 1.77% | |||||
| 7/1/17 | 2470.300049 | 134.045135 | 1.93% | -5.95% | |||||
| 8/1/17 | 2471.649902 | 132.525589 | 0.05% | -1.13% | |||||
| 9/1/17 | 2519.360107 | 135.845322 | 1.93% | 2.50% | |||||
| 10/1/17 | 2575.26001 | 144.253708 | 2.22% | 6.19% | |||||
| 11/1/17 | 2584.840088 | 144.169418 | 0.37% | -0.06% | |||||
| 12/1/17 | 2673.610107 | 145.090317 | 3.43% | 0.64% | |||||
| 1/1/18 | 2823.810059 | 154.81218 | 5.62% | 6.70% | |||||
| 2/1/18 | 2713.830078 | 147.369476 | -3.89% | -4.81% | |||||
| 3/1/18 | 2640.870117 | 146.528397 | -2.69% | -0.57% | |||||
| 4/1/18 | 2648.050049 | 138.439392 | 0.27% | -5.52% | |||||
| 5/1/18 | 2705.27002 | 134.953568 | 2.16% | -2.52% | |||||
| 6/1/18 | 2718.370117 | 134.897034 | 0.48% | -0.04% | |||||
| 7/1/18 | 2816.290039 | 139.94722 | 3.60% | 3.74% | |||||
| 8/1/18 | 2901.52002 | 141.443924 | 3.03% | 1.07% | |||||
| 9/1/18 | 2913.97998 | 147.588791 | 0.43% | 4.34% | |||||
| 10/1/18 | 2711.73999 | 112.665642 | -6.94% | -23.66% | |||||
| 11/1/18 | 2760.169922 | 121.293945 | 1.79% | 7.66% | |||||
| 12/1/18 | 2506.850098 | 112.360855 | -9.18% | -7.36% | |||||
| 1/1/19 | 2704.100098 | 132.871872 | 7.87% | 18.25% | |||||
| 2/1/19 | 2753.030029 | 135.936172 | 1.81% | 2.31% |
6.2007889650528281E-3 2.1030280012996005E-2 1.9058331658920569E-2 -1.5079830581919862E-2 3.7655295489735119E-2 -1.5513837223063764E-2 2.3201460786772321E-2 2.4533588760364822E-2 -4.1885878779204244E-3 -3.1040805790470194E-2 5.4892511014553946E-2 -1.739610691375626E-2 8.5208197301247512E-3 1.0491382393316817E-2 -2.1011672375900514E-2 1.9742029696721453E-2 -6.2580818167202845E-2 -2.6442831573227132E-2 8.298311776039 4132E-2 5.0486926072412786E-4 -1.7530185176314439E-2 -5.073532197294639E-2 -4.1283604302990717E-3 6.5991114577365062E-2 2.6993984808731941E-3 1.5324602357572603E-2 9.1092112097812539E-4 3.5609801125254359E-2 -1.2192431360480427E-3 -1.2344508443253854E-3 -1.9425679279557517E-2 3.4174522187570444E-2 1.8200762196895148E-2 1.7884358171464498E-2 3.7198160337279074E-2 -3.8919718808450021E-4 9.0912085493182193E-3 1.157625139134133E-2 4.8137750908554544E-3 1.9348826118030571E-2 5.4643281108557318E-4 1.9302978533243698E-2 2.218813533034969E-2 3.7200430103365711E-3 3.4342557364422932E-2 5.6178704444133087E-2 -3.8947372061896912E-2 -2.6884498624825115E-2 2.718775131643536E-3 2.1608341965291933E-2 4.8424360241865472E-3 3.6021556221367268E-2 3.0263211466054596E-2 4.2942871026614426E-3 -6.9403356024429486E-2 1.7859356788848979E-2 -9.1 776894596563907E-2 7.8684401655036762E-2 1.8094718844243074E-2 2.0676307902285584E-2 -6.163810101229128E-2 -1.1035662590510142E-2 5.7372794066531396E-2 3.2868969664954228E-3 -7.0065689016532984E-3 -0.13396193524338373 -1.356431751200482E-2 -3.89646540725197E-3 -4.4440310989834919E-2 5.6291006571725477E-2 -1.9400455700466779E-3 6.7227741145276632E-2 -9.5745482125134673E-3 -2.6504164615787196E-2 -4.1188286324743695E-3 -8.7042558409684112E-2 -1.1606943979709405E-2 -3.3731210093108754E-2 -4.7114853844807403E-3 -3.6514389771069578E-3 -9.3227764890594367E-2 5.0003995466404882E-2 0.16764859822398859 -3.6381918648193734E-2 5.3447138382979764E-2 6.3436676436696704E-3 5.8242014202791736E-2 -1.0832859233349534E-2 8.4462643838201235E-3 -3.2483600788921319E-2 5.5501474328351286E-2 3.25230469209 17453E-2 5.1388494638524351E-2 3.036895943507556E-2 -2.39300614916792E-2 -7.9533718745858906E-2 -4.778812370689578E-2 1.7707627660027425E-2 -5.9546281438726867E-2 -1.133607721011276E-2 2.5049750957907513E-2 6.1896765204767057E-2 -5.843177355273621E-4 6.3876168245333709E-3 6.7005594866816676E-2 -4.8075700503668495E-2 -5.7072809297359361E-3 -5.5204350594240226E-2 -2.5179422920320271E-2 -4.1891445211728051E-4 3.7437339059656294E-2 1.0694774787237904E-2 4.3443838563189008E-2 -0.23662467022986855 7.658326750581157E-2 -7.3648276507124799E-2 0.18254593203300207 2.30620668910273E-2
WACC
| Cost | Weight | ||
| Equity | 9.68% | 77.83% | |
| After tax debt | 1.56% | 22.17% | |
| WACC | 7.88% | Math | 7.88% |
