Pinkerton UGBA 103 Work Submit-1.xlsx - CPP Financials:...

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DebtInterest Bearing DebtDebt Tax ShieldTax ShieldEquityShareholders' EquityValueUnlevered ValueLevered ValueDebtInterest Bearing DebtDebt Tax ShieldTax ShieldEquityShareholders' EquityValueUnlevered ValueLevered ValueRisk-Free RateCorporate Tax RateTotal Debt (in millions*)Total Equity (in millions*)% of Debt% of EquityMarket RateMarket Risk PremiumAsset BetaCost of EquityCost of DebtWACC
CPP Financials: 1987 (Millons)Total Liabilities & Equities - Shareholders' EquityCorporate Tax Rate * Interest Bearing DebtTotal Assets - Interest Bearing DebtDebt + Equity - Tax ShieldUnlevered Value + Tax ShieldPinkerton Financials: 1987 (Millions)Accounts Payable + Accrued Expenses & Other Current LiabilitiesCorporate Tax Rate * Interest Bearing DebtTotal Assets - Interest Bearing DebtTotal AssetsUnlevered Value - Tax Shield30 year treasury bond rateGiven as corporate tax rateWackenhutGivenStock Price * Shares Outstanding ($18 * 3.9MDebt/(Debt + Equity)Equity/(Debt + Equity)Minimum Return Investor Seeks (AssumptionMarket Rate - Risk Free RateGivenRisk Free Rate + Beta * (Market Rate - Risk Free RGiven as BBB corporate bond yield% of Debt * Cost of Debt * (1 - Tax Rate) + % of Equity * C
$37.20$12.65$18.00$42.55$55.20$30.60$10.40$56.40$87.00$76.608.58%34.00%$10.60M)$70.2013.12%86.88%n)16.05%7.47%0.89Rate)15.23%10.58%Cost of Equity14.15%

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Tags
Generally Accepted Accounting Principles, Pinkerton, total debt

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