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wacc kerry group

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  • 03-04-2013 5:52pm
    #1
    Registered Users Posts: 307 ✭✭


    I'm looking for info on how to calculate the w.a.c.c of the Kerry Group for 2011.
    I have the figures for m.v of kerry group 3510.2m - {equity(1,939.6m) and debt(1,570.6m).
    Do I also need the cost of equity and debt and if so how do I go about getting this percentage. What else would I need to calculate the wacc. Any help on this would be much appreciated thanks.


Comments

  • Registered Users Posts: 1,287 ✭✭✭SBWife


    Cost of debt is the yield on the debt, cost of equity use the CAPM equation.


  • Registered Users Posts: 307 ✭✭cizolin


    For the capm where do I locate the components i.e beta factor, risk free rate and market return/risk premium. Its where to get the figures from I seem to have most issues with.

    As for debt I have looked at the financial statements but can't find a percentage for debt. Bit lost on that one. Putting in the time but want to make sure I'm correct in what I'm doing so it's a time burner

    Have to say thanks for your help again and giving me a better understanding.


  • Registered Users Posts: 1,287 ✭✭✭SBWife


    Beta if you don't have Bloomberg access try the ISE site.

    Risk free rate, long term yield on low risk bonds, use German Goverment bonds.

    Risk premium historical performance of equity markets above bonds or expected performance, always a matter of debate, try 5%, or look for a better estimate online.


  • Registered Users Posts: 1,287 ✭✭✭SBWife


    Current yield on the debt is what you want, should be published in the FT if again you don't have Bloomberg.


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