this document contains the calculation of weighted average cost of capital of flexituff international which is a packaging company. it calculates cost of equity, cost of retained earnings and cost of debt too for the years from 2010 to 2014.
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Sheet1flexituffcost of equity =(next dividend/current market
price) + growth rate20142013201220112010dividend11111market
price225220236growth rate0%0%0%0%0%next dividend11111cost of
equity0.44%0.45%0.42%ERROR:#DIV/0!ERROR:#DIV/0!cost of retained
earning = same as of equitycost of debt =rd*(1-tax rate) rd =
interest/net
proceeds20142013201220112010interest56.3563.0346.3325.6120.29np449.05316.37237.39289.14268.41rd12.55%19.92%19.52%8.86%7.56%tax
rate36%20%23%14%43%cost of
debt8.00%15.88%14.95%7.63%4.29%wacc20142013201220112010equity24.8822.9821.7317.2111.52preference00000reserves335.05289.34244.23146.5665.76debt449.05316.37237.39289.14268.41total808.98628.69503.35452.91345.69weight(%)20142013201220112010%equity0.03075477760.03655219580.04317075590.03799871940.033324655%prerf00000%reserve0.41416351450.46022682080.4852090990.32359629950.1902282392%debt0.55508170780.50322098330.4716201450.63840498110.7764471058weight*cost20142013201220112010equity0.0137%0.0166%0.0183%ERROR:#DIV/0!ERROR:#DIV/0!pref0.0000%0.0000%0.0000%0.0000%0.0000%reseve0.1841%0.2092%0.2056%ERROR:#DIV/0!ERROR:#DIV/0!debt4.4431%7.9890%7.0510%4.8708%3.3299%
