yield to maturity rate
Hi there! Hope all is well. Can you check my work please. You can skip #1 and assume that it is correct along with the yield to maturity rate you will see. If I need to separate this question let me know.
Period Ending: 02/02/2014 03/02/2013 29/01/2012 30/01/2011
Total Revenue $78,812,000 $74,754,000 $70,395,000 $67,997,000
Cost of Revenue $51,422,000 $48,912,000 $46,133,000 $44,693,000
Gross Profit $27,390,000 $25,842,000 $24,262,000 $23,304,000
Operating Expenses
Research and Development $0 $0 $0 $0
Sales, General and Admin. $16,597,000 $16,508,000 $16,028,000 $15,849,000
Non-Recurring Items $0 $0 $0 $0
Other Operating Items $1,627,000 $1,568,000 $1,573,000 $1,616,000
Operating Income $9,166,000 $7,766,000 $6,661,000 $5,839,000
Add'l income/expense items $12,000 $87,000 $13,000 ($36,000)
Earnings Before Interest and Tax $9,178,000 $7,853,000 $6,674,000 $5,803,000
Interest Expense $711,000 $632,000 $606,000 $530,000
Earnings Before Tax $8,467,000 $7,221,000 $6,068,000 $5,273,000
Income Tax $3,082,000 $2,686,000 $2,185,000 $1,935,000
Minority Interest $0 $0 $0 $0
Equity Earnings/Loss Unconsolidated Subsidiary $0 $0 $0 $0
Net Income-Cont. Operations $5,385,000 $4,535,000 $3,883,000 $3,338,000
Net Income $5,385,000 $4,535,000 $3,883,000 $3,338,000
Net Income Applicable to Common Shareholders $5,385,000 $4,535,000 $3,883,000 $3,338,000
Period Ending: 02/02/2014 03/02/2013 29/01/2012 30/01/2011
Current Assets
Cash and Cash Equivalents $1,929,000 $2,494,000 $1,987,000 $545,000
Short-Term Investments $0 $0 $0 $0
Net Receivables $1,398,000 $1,395,000 $1,245,000 $1,085,000
Inventory $11,057,000 $10,710,000 $10,325,000 $10,625,000
Other Current Assets $895,000 $773,000 $963,000 $1,224,000
Total Current Assets $15,279,000 $15,372,000 $14,520,000 $13,479,000
Long-Term Assets
Long-Term Investments $0 $0 $135,000 $139,000
Fixed Assets $23,348,000 $24,069,000 $24,448,000 $25,060,000
Goodwill $1,289,000 $1,170,000 $1,120,000 $1,187,000
Intangible Assets $0 $0 $0 $0
Other Assets $602,000 $473,000 $295,000 $260,000
Deferred Asset Charges $0 $0 $0 $0
Total Assets $40,518,000 $41,084,000 $40,518,000 $40,125,000
Current Liabilities
Accounts Payable $9,379,000 $8,871,000 $8,199,000 $7,903,000
Short-Term Debt / Current Portion of Long-Term Debt $33,000 $1,321,000 $30,000 $1,042,000
Other Current Liabilities $1,337,000 $1,270,000 $1,147,000 $1,177,000
Total Current Liabilities $10,749,000 $11,462,000 $9,376,000 $10,122,000
Long-Term Debt $14,691,000 $9,475,000 $10,758,000 $8,707,000
Other Liabilities $2,042,000 $2,051,000 $2,146,000 $2,135,000
Deferred Liability Charges $514,000 $319,000 $340,000 $272,000
Misc. Stocks $0 $0 $0 $0
Minority Interest $0 $0 $0 $0
Total Liabilities $27,996,000 $23,307,000 $22,620,000 $21,236,000
Stock Holders Equity
Common Stocks $88,000 $88,000 $87,000 $86,000
Capital Surplus $8,402,000 $7,948,000 $6,966,000 $6,556,000
Retained Earnings $23,180,000 $20,038,000 $17,246,000 $14,995,000
Treasury Stock ($19,194,000) ($10,694,000) ($6,694,000) ($3,193,000)
Other Equity $46,000 $397,000 $293,000 $445,000
Total Equity $12,522,000 $17,777,000 $17,898,000 $18,889,000
Total Liabilities & Equity $40,518,000 $41,084,000 $40,518,000 $40,125,000
Don't worry about #1
Let's assume I did it
correctly
Please look at these on
the next sheet
Market Price with Shortest Maturity 108.68
Short-term Debt/Current Portion of Long Term Debt $3,300,000
Long-term Debt $1,469,100,000
Cash $192,900,000
Book Value of Debt $1,279,500,000
Market Value of Debt $139,056,060,000
Number of Shares Outstanding 1,368,097,000
Current Stock Price $79.52 *Delayed - data as of Apr. 29, 2014
Market Value of Equity $108,791,073,440.00
Market Debt to Equity Ratio 1.278193657
cost of levered equity 12%
D/E ratio 1.28
yield to maturity 0.623%
Cost of Capital of Levered Equity 0.265420092
Market Value of Debt $139,056,060,000
Market Value of Equity $108,791,073,440.00
Total Capital Structure $247,847,133,440.00
Debt Percentage 56.11%
Equity percentage 43.89%
Cost of levered equity 26.54%
yield to maturity 0.623%
WACC 12.00%
Market Value of Debt $139,056,060,000 Market Value of Debt $139,056,060,000
Add 1,000,000,000 Subtract 1,000,000,000
New Market Value of Debt $140,056,060,000 New Market Value of Debt $138,056,060,000
Market Value of Equity $108,791,073,440.00 Market Value of Equity $108,791,073,440.00
Subtract 1,000,000,000 Add 1,000,000,000
New Market Value of Equity $107,791,073,440.00 New Market Value of Equity $109,791,073,440.00
New DE Ratio 1.299328929 New DE Ratio 1.257443394
Cost of Levered Equity Cost of Levered Equity
cost of levered equity 12% cost of levered equity 12%
D/E ratio 1.30 D/E ratio 1.26
yield to maturity 0.623% yield to maturity 0.623%
New Cost of Capital of Levered Equity 0.267901 New Cost of Capital of Levered Equity 0.2633502
WACC WACC
New Market Value of Debt $140,056,060,000 New Market Value of Debt $138,056,060,000
New Market Value of Equity $107,791,073,440.00 New Market Value of Equity $109,791,073,440.00
Total Capital Structure $247,847,133,440.00 Total Capital Structure $247,847,133,440.00
Debt Percentage 56.51% Debt Percentage 55.70%
Equity percentage 43.49% Equity percentage 44.30%
Cost of levered equity 26.79% Cost of levered equity 26.33%
yield to maturity 0.623% yield to maturity 0.623%
New WACC 12.00% New WACC 12.01%