Purchase Solution

WACC

Not what you're looking for?

Ask Custom Question

See attached files.

Google is the target company using a two-year financial analysis, need to calculate the WACC for 2008 and 2009.

Attached are the financial reports for 2008 and 2009 and relevant links.

Investor relations
http://investor.google.com/financial/2008/filings-archives.html

Quarterly Earnings
http://investor.google.com/earnings.html

Financial Tables
http://investor.google.com/financial/tables.html

Attachments
Purchase this Solution
Solution Summary

The solution explains the solution in a very clear way and it is very wasy to follow along. The solution must be downloaded by students who are looking to undertand how to solve such questions in the future. It provides a good understanding of the problem. Overall, an excellent response.

Solution Preview

See attached files.

As source of financial data, I have used Capital IQ for getting ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Multiple choice

    The project's IRR increasess as the WACC declines. The project's NPV increases as the WACC declines.

  • MCQ on capital budgeting

    MIRR is calculated by investing the intermediate cash flows at project's WACC. Therefore, MIRR is affected by WACC. Payback period does not use any discount rate; hence WACC has no role to play in the calculation of WACC.

  • WACC Explanation and analysis

    433532 WACC Explanation and analysis See attached file. Provided to you are 2 rounds of separate WACC analysis. Please provide an explanation of the WACC results and compare the rounds to each other. Are the WACC results a positive outcome?

  • What is meant by Weighted Average Cost of Capital (WACC)?

    209965 Weighted Average Cost of Capital (WACC) Definition a. What is meant by Weighted Average Cost of Capital (WACC)? b. What are the components of WACC? c. Why is WACC a more appropriate discount rate when doing capital budgeting? d.

  • Last month, Lloyd's Systems analyzed the project whose cash

    A financial calculator would be the simplest: NPV = CF0+CF1/(1+WACC)^1+CF2/(1+WACC)^2+CF3/(1+WACC)^3 Old WACC = 10%, NPV = -1000+410/(1+10%)^1+410/(1+10%)^2+410/(1+10%)^3 = $19.61 WACC = 11.25% New NPV = -1000+410/(1+11.25%)^1+410/(1+11.25%

  • Weighted Average Cost of Capital

    Situation 1 - Equity 50%, Preferred Stock 25% & Debt 25% WACC = 50%*14 + 25%*6 + 25%*8*(1-0.35) WACC = 7% + 1.5% + 1.3% WACC = 9.8% Situation 2 - Equity 60%, Preferred Stock 20% & Debt 20% WACC = 60%*14 + 20%*6 + 20%*8*(1-0.35) WACC = 8.4%

  • WACC

    129892 WACC The general rule for using the weighted average cost of capital in capital budgeting decisions is accept all projects with rates of return greater or equal to the WACC, less than the WACC, equal to or less than the WACC or positive rates of

  • cost of common stock that you would use in the WACC formula

    WACC Formula Describe how you would calculate the cost of common stock that you would use in the WACC formula? How are the weights derived that are used in the WACC formula?

  • WACC from the asset structure for McCabe Interests

    WACC = 14.25% The solution estimates WACC from the asset structure for McCabe Interests.

  • Weighted Average Cost of Capital (WACC)

    WACC = 10.60% The solution computes wacc with the given information.

View More Related Solutions