Finance Organization and Long-Term Planning Discussion Question

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m3a1_genesis_wacc_calc.xlsx

M3, A1

Module 3, Assignment 1
Genesis WACC
Item Amount ($000) % Interest Weighted
Total Rate Rate
Accounts Payable 300,000 8.00% 0.00%
Short-term Note Payable 100,000 8.00% 0.00%
Total Current Liabilities 400,000
Long-term Note Payable 400,000 9.00% 0.00%
Mortgage Payable 1,200,000 10.00% 0.00%
Total Liabilites 1,600,000
Common Stock Equity 1,500,000 15.51% 0.00%
Operating Equity 500,000 15.51% 0.00%
Total Liabilities and Equity 4,000,000
WACC = 0.00%