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Finance Home Watchlists My Portfolio My Screeners Markets Industries Personal Finance Technology Originals Avg Vol (10 day)3 Shares Outstanding Float % Held by Insiders 1 % Held by Institutions 1 Shares Short 3 Short Ratio 3 Short % of Float 3 Shares Short (prior month)3 12.55M Fiscal Year 4.23B Fiscal Year Ends Dec 31, 2017 4.22B Most Recent Quarter (mrq) Mar 31, 2018 0.09% 53.72% 34.16M 2.51 0.81% 28.99M Profitability Profit Margin Operating Margin (ttm) 8.19% 6.70% Management Effectiveness Return on Assets (ttm) Return on Equity (ttm) 3,00% 1 085% Dividends & Splits Forward Annual Dividend Rate Forward Annual Dividend Yield Trailing Annual Dividend Rate3 Trailing Annual Dividend Yield 3 5 Year Average Dividend Yield Payout Ratio 4 Income Statement Revenue (ttm) Revenue Per Share (ttm) Quarterly Revenue Growth (yoy) Gross Profit (ttm) EBITDA 248.39B 58.20 16.70% 74.82B 34.99B 3.28 4,07% 3.08 3.81% 3.28 64.57%

Explanation / Answer

nswer A) Here , from the given detailed dat about the financial position of company ,

cost of preferred stock = 0 , as preferred stock were not used by company till now

cost of common equity = Income incomeapplicable to common equity / Common equity value

= 19710000 / 187688000 = 10.50 %

Cost of Debt = Interest cost / total debt =601000/ 23079000 =2.60%

Capital structure

total capital = Equity + debt =187688000 + 23079000 = $ 210767000

DEbt % = 10.95%

Equity % = 89.05%

WACC = WE VE + WD VD = 0.1095 * 2.60 + 0.8905 * 10.50 = 9.635% .

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