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WACC & Capital Structure

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Please help me calculate WACC and the three methods of calculating the cost of equity.
Assist with calculating it on the 2011 10k totals for Exxon Mobil, Chevron and Conoco-Phillips.

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Solution Summary

In this solution we show how to calculate the weighted average cost of capital WACC and the three methods of calculating the cost of equity on the 2011 totals for Exxon Mobil, Chevron, and Conoco-Phillips.

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Please see the attached file for the complete solution.
Please note the website for Conoco-Phillips is under maintenance currently, so we have got the data from yahoo Finance and therefore the format is slightly different from Exxon and Chevron.

Cost of Debt
(millions of dollars) Amount Interest Rate Interest Amount
6.250% senior note due 2013 185 6.25% 11.56 http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-sec
4.625% senior note due 2013 145 4.63% 6.71
5.750% senior note due 2013 346 5.75% 19.90
4.900% senior note due 2014 260 4.90% 12.74
5.000% senior note due 2015 138 5.00% 6.90
5.300% senior note due 2015 255 5.30% 13.52
5.650% senior note due 2016 222 5.65% 12.54
6.250% senior note due 2017 513 6.25% 32.06
5.500% senior note due 2018 402 5.50% 22.11
6.500% senior note due 2018 506 6.50% 32.89
6.100% senior ...

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Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
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