FINANCIAL ANALYSIS

Financial Analysis refers to an assessment of the Weig

Capital (WACC)
MBA 1ST Weakend (1.5)
Saba Shakeel
Majid Ali
Abdula Mateen
 Blow Is The Folmula For Calculating The Weight Average Cost Of Capital (WACC

WACC = We(ke)+wd(kd)(1-T)+Wp(kp)

Spread sheet caculation Enter Data

WACC = W
Required return on debt RD 3%
WACC = 73%(10
Required return on equity RE 11%

Marignal tax rate T 38%

Debt D 27%

Equity E 73%

Actual calculation
return debt 2.70%
return equity 10.50%
tax/nibt 38%
debt 27%
equity 73%

income Statement sin m Blance sheet

Sales 9,488.80 Current Assets
Cost of sales 5,784.90 Non Current Assets
Gorss Profit 3,703.90 Total Assets

Operating expences 2,689.70 Total Current Liabilities

Operating income 1,014.20 Long term Debt
Interest and other expences 92.80 Income tax and other liabilities
Net income before tax 921.40 Prefreed stock
Tex expences 331.70 Common stock
Net income after tax 589.70 Retain earining
Total equity
Total debt and equity
ALYSIS

ent of the Weight Average Cost Of

WACC)
e Cost Of Capital (WACC) Blow is the formula for Calculating the Cost of Equity

+Wp(kp) KE= Rf +B(Rm-Rf)

Rf 5.74%
WACC = We(ke)+wd(kd)(1-T)+Wp(kp) B 0.8
Rm-Rf 0.059
WACC = 73%(10.50%)+27%(2.70%)(1-38%)=0(0)
0.0811698 0.1046
8% 10%
AMOUNT IN M

CURRENRT PORATION 5.40

NOTES PAYABLE 855.30
LONG TEEM DEBT 435.90
TOTAL DEBT 1,296.60
TOTAL Equity 3,494.50
TOTAL 4,791.10

Sin m
3,625.30
2,194.30
5,819.60

1,786.70
435.90
102.20
0.30
2.80
3,194.30
3,494.50
5,819.60
 FINANCIAL ANALYSIS

Financial Analysis refers to an assessment of the We

Capital (WACC)
MBA 1ST Weakend (1.5)
Saba Shakeel
Majid Ali
Abdula Mateen
 Blow Is The Folmula For Calculating The Weight Average Cost Of Capital (WA

WACC = We(ke)+wd(kd)(1-T)+Wp(kp)

Spread sheet caculation Enter Data

Required return on debt RD 15%

Required return on equity RE 7%

Marignal tax rate T 17%

Debt D 26%

Equity E 74%

Actual calculation
return debt 15.16%
return equity 6.70%
tax/nibt 17%
debt 26%
equity 74%

income Statement sin m Blance sheet

Sales 53,729,124.00 Current Assets
Cost of sales 48,178,678.00 Non Current Assets
Gorss Profit 5,550,446.00 Total Assets
Operating expences 3702134
Operating income 1,848,312.00 Total Current Liabilities
Other income 4,102,639.00 Long term Debt
Frofit from operation 5,950,951.00 Total Liabilities
Finance Cost 993,824.00 Prefreed stock
Income Befor Tex 4,957,127.00 Common stock
Tax Expences 860,000.00 Retain earining
Profit after tax 4,097,127.00 Total equity
Total debt and equity
ANALYSIS

ssessment of the Weight Average Cost Of

pital (WACC)
ght Average Cost Of Capital (WACC)

d)(1-T)+Wp(kp)

WACC = We(ke)+wd(kd)(1-T)+Wp(kp)

8%
0.0811698
8%

Blance sheet Sin m

Current Assets 29,042,685.00
on Current Assets 73,693,348.00
Total Assets 102,736,033.00

al Current Liabilities 21,260,216.00

Long term Debt 5,762,672.00 Reserve 72197146
Total Liabilities 27,022,888.00 dividend 81746
Prefreed stock -
Common stock 3,434,253.00 Retain Earning 72278892
Retain earining 72,278,892.00
Total equity 75,713,145.00 total equity 75,713,145.00
l debt and equity 102,736,033.00 common stock 3,434,253.00
 Beginnin End of Annual
Year g of Year Year Growth
2012 $45.87 $43.34 -5.50% -5.52%
2013 $43.34 $41.34 -4.60% -5.10%
2014 $41.13 $49.17 19.50% 19.60%
2015 $49.19 $46.42 -5.60% -5.63%
2016 $46.42 $49.15 5.90% 5.88%

d0/D1-1 current/last year - 1