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what is the wacc for amerisourcebergen? Wacc for AmerisourceBergen Income Statem

ID: 2620673 • Letter: W

Question

what is the wacc for amerisourcebergen?

Wacc for AmerisourceBergen

Income Statement 9/30/17 Sales $153,144.00 Cost Of Goods $148,598.00 Gross Profit $4,546.00 Selling & Adminstrative & Depr. & Amort Expenses $3,486.00 Income After Depreciation & Amortization $1,060.00 Non-Operating Income $3.00 Interest Expense $145.00 Pretax Income $918.00 Income Taxes $553.00 Minority Interest $0.00 Investment Gains/Losses $0.00 Other Income/Charges $0.00 Income From Cont. Operations $364.00 Extras & Discontinued Operations $0.00 Net Income $364.00 Depreciation Footnote 9/30/17 Income Before Depreciation & Amortization $1,493.00 Depreciation & Amortization (Cash Flow) $432.00 Income After Depreciation & Amortization $1,060.00 Earnings Per Share Data 9/30/17 Average Shares $221.60 Diluted EPS Before Non-Recurring Items $5.88 Diluted Net EPS $1.64

Explanation / Answer

Answer ) WACC = Weight of equity* Cost of equity + Weight of debt* Cost of debt

Cost of equity = EPS / Average Value of share  

Cost of Debt = Interest paid / Value of debt

Weight of equity = Total value of Equity / total value of capital

Weight of debt = Total value of debt / total value of capital

As per given data ,

WACC = 3.4172% = 3.42%

Average Shares $221.60 Long-Term Debt 3,782 interest Expense $145.00 weight of equity 0.353062 EPS $5.88 Total Shareholder's Equity 2,064 Cost of debt 3.8340% weight of debt 0.646938 Cost of equity 2.6534% Total capital 5,846