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Quarter 12 - Capital Budgeting

# Quarter 12 - 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 \$9,685,000.00 3.21200% 2.56960% 21.74719% 0.55881585% Total Long Term Liabilities \$9,685,000.00 Owners' equity **Preferred Stock \$0.00 4.83000% 3.86400% 0.00000% 0.00000000% ***Common Stock \$20,912,158.00 5.21200% 4.16960% 46.95722% 1.95792842% ***Retained Earnings \$13,937,327.00 5.21200% 4.16960% 31.29558% 1.30490066% Total Equity \$34,849,485.00 Total 100.00000% Total Capital (Total Liabilities + Total Equity) \$44,534,485.00 WACC 3.82164493% 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 4.83000% ***For CS and RE an approx of the 5.21200% cost for equity is the bond rate + 2%

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Cost \$518,088.00 Labor Total Overhead Q Units Savings Labor Savings Savings Total Savings Dep per Yr Increase in TI Taxes 20% NI ATCF Q12 100000 \$0.64 \$64,000.00 \$13,215.00 \$77,215.00 \$64,761.00 \$12,454.00 \$2,490.80 \$9,963.20 \$74,724.20 Q13 100000 \$0.65 \$65,000.00 \$13,215.00 \$78,215.00 \$64,761.00 \$13,454.00 \$2,690.80 \$10,763.20 \$75,524.20 Q14 100000 \$0.66 \$66,000.00 \$13,215.00 \$79,215.00 \$64,761.00 \$14,454.00 \$2,890.80 \$11,563.20 \$76,324.20 Q15 100000 \$0.67 \$67,000.00 \$13,215.00 \$80,215.00 \$64,761.00 \$15,454.00 \$3,090.80 \$12,363.20 \$77,124.20 Q16 EST 100000 \$0.68 \$68,000.00 \$13,215.00 \$81,215.00 \$64,761.00 \$16,454.00 \$3,290.80 \$13,163.20 \$77,924.20 Q17 EST 100000 \$0.69 \$69,000.00 \$13,215.00 \$82,215.00 \$64,761.00 \$17,454.00 \$3,490.80 \$13,963.20 \$78,724.20 Q18 EST 100000 \$0.70 \$70,000.00 \$13,215.00 \$83,215.00 \$64,761.00 \$18,454.00 \$3,690.80 \$14,763.20 \$79,524.20 Q19 EST 100000 \$0.71 \$71,000.00 \$13,215.00 \$84,215.00 \$64,761.00 \$19,454.00 \$3,890.80 \$15,563.20 \$80,324.20 Cost -\$518,088.00 Savings q1 \$74,724.20 Savings q2 \$75,524.20 Savings q3 \$76,324.20 Savings q4 \$77,124.20 Savings q5 \$77,924.20 Savings q6 \$78,724.20 Savings q7 \$79,524.20 Savings q8 \$80,324.20 WACC
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Quarter 12 - Capital Budgeting - Simple WACC Calculation...

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