Quarter 5 - Capital Budgeting

Quarter 5 - Capital Budgeting - Simple WACC Calculation...

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Simple WACC Calculation Explantion From Quarterly From Printout (For Debt Only) (Capital Component of Variables Printout and See** Below Rate(1-T) /Total Capital) Weight * A/T Cost Long Term Liabilities $ Amount Rate (A/T Cost) Weight% Weighted cost * Intermediate Loans: 2 years $0.00 3.11000% 2.48800% 0.00000% 0.00000000% * 3 years $0.00 2.50000% 2.00000% 0.00000% 0.00000000% *Bonds $12,592,500.00 3.21200% 2.56960% 31.09130% 0.79892214% Total Long Term Liabilities $12,592,500.00 Owners' equity **Preferred Stock $0.00 3.67000% 2.93600% 0.00000% 0.00000000% ***Common Stock $20,912,158.00 5.21200% 4.16960% 51.63282% 2.15288196% ***Retained Earnings $6,997,021.00 5.21200% 4.16960% 17.27588% 0.72033504% Total Equity $27,909,179.00 Total 100.00000% Total Capital (Total Liabilities + Total Equity) $40,501,679.00 WACC 3.67213914% Outstanding Debt Yields (historical) from Printout under Summary Data: 2-year loan 3-year loan Bonds 3.11000% 2.50000% 3.21200% Preferred Dividend Yield from the Summary Data 3.67000% ***For CS and RE an approx of the 5.21200% cost for equity is the bond rate + 2%
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Cost $607,992.00 Labor Total Overhead Q Units Savings Labor Savings Savings Total Savings Dep per Yr Increase in TI Taxes 20% NI ATCF Q5 100000 0.75 $75,000.00 $15,189.00 $90,189.00 $75,999.00 $14,190.00 $2,838.00 $11,352.00 $87,351.00 Q6 100000 0.78 $78,000.00 $15,189.00 $93,189.00 $75,999.00 $17,190.00 $3,438.00 $13,752.00 $89,751.00 Q7 100000 0.81 $81,000.00 $15,189.00 $96,189.00 $75,999.00 $20,190.00 $4,038.00 $16,152.00 $92,151.00 Q8 100000 0.84 $84,000.00 $15,189.00 $99,189.00 $75,999.00 $23,190.00 $4,638.00 $18,552.00 $94,551.00 Q9 EST 100000 0.87 $87,000.00 $15,189.00 $102,189.00 $75,999.00 $26,190.00 $5,238.00 $20,952.00 $96,951.00 Q10 EST 100000 0.9 $90,000.00 $15,189.00 $105,189.00 $75,999.00 $29,190.00 $5,838.00 $23,352.00 $99,351.00 Q11 EST 100000 0.93 $93,000.00 $15,189.00 $108,189.00 $75,999.00 $32,190.00 $6,438.00 $25,752.00 $101,751.00 Q12 EST 100000 0.96 $96,000.00 $15,189.00 $111,189.00 $75,999.00 $35,190.00 $7,038.00 $28,152.00 $104,151.00 Cost -$607,992.00 Savings q1 $87,351.00 Savings q2 $89,751.00 Savings q3 $92,151.00 Savings q4 $94,551.00 Savings q5 $96,951.00 Savings q6 $99,351.00 Savings q7 $101,751.00 Savings q8
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