INTRODUCTION:
This session long project looks at the calculations used to determine the weighted average cost of capital (WACC). This SLP calculates the WACC for my SLP company – McDonalds, discusses how those calculations were arrived at and briefly describes WACC and what investors use it for.
COMPANY NAME: McDonalds Inc Balance sheet date: 31 DEC 07
Market values date: 1 SEP 08
SOURCE BOOK VALUE MARKET VALUE PROPORTIONS COST (%) PRODUCT
(a) (b) (c) (d) (e) (f) = (d) x (e)
Short term liabilities 4498.5 4498.5 0.0538 0.01518 0.0008
Long term liabilities 9613.4 9613.4 0.1151 0.0272 0.0031
Shareholders' Equity 69440 69440 0.8311 0.02449 0.0204
Total 83551.9 83551.9 1 &nbs ...