Please follow the instruction carefully and note:You have to use the same company that i provided to you It should be original with reference I will present this presentation so you have to write what i have to say for each silde.
ibm_wacc.xlsx

wacc_of_ibm.ppt

fin515_week_7___project_4.docx

week_7___project_4.docx

Unformatted Attachment Preview

International Business Machines Corporation (IBM)
Income Statement
(All numbers in thousands)
2013
2014
2015
98.367.000
92.793.000
81.741.000
49.683.000
46.386.000
41.057.000
48.684.000
46.407.000
40.684.000
Period Ending
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses:
Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations:
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income From Non-recurring Operation
Net Income
5.743.000
22.629.000
28.372.000
20.312.000
5.437.000
22.438.000
27.875.000
18.532.000
5.247.000
19.748.000
24.995.000
15.689.000
333.000
20.646.000
402.000
20.244.000
3.363.000
16.881.000
1.938.000
20.470.000
484.000
19.986.000
4.234.000
15.752.000
724.000
16.413.000
468.000
15.945.000
2.581.000
13.364.000
(3.729.000)
(3.729.000)
12.023.000
(174.000)
(174.000)
13.190.000
(398.000)
(398.000)
16.483.000
International Business Machines Corporation (IBM)
Balance Sheet
Period Ending
Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets
Liabilities and Owner’s Equity
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill
Total Liabilities
Stockholders’ Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Total Stockholder Equity
Total Liabilities and Owner’s Equity
December 31, 2013
(All numbers in thousands)
December 31, 2014
10.716.000
350.000
33.487.000
2.310.000
4.488.000
51.351.000
17.394.000
13.821.000
31.184.000
3.871.000
5.551.000
3.051.000
126.223.000
8.476.000
508.000
31.831.000
2.103.000
4.967.000
47.885.000
16.629.000
10.771.000
30.556.000
3.104.000
2.160.000
6.675.000
117.780.000
20.735.000
6.862.000
12.557.000
40.154.000
32.856.000
26.176.000
4.108.000
137.000
103.431.000
21.973.000
5.731.000
11.877.000
39.581.000
34.991.000
26.994.000
3.691.000
146.000
105.403.000
51.594.000
130.042.000
(137.242.000)
(21.602.000)
22.792.000
126.223.000
52.666.000
137.793.000
(150.715.000)
(27.875.000)
11.869.000
117.272.000
M)
(All numbers in thousands)
December 31, 2015
7.686.000
508.000
28.554.000
1.551.000
4.205.000
42.504.000
15.200.000
10.727.000
32.021.000
3.487.000
1.734.000
4.822.000
110.495.000
16.788.000
6.461.000
11.021.000
34.270.000
33.428.000
24.603.000
3.771.000
162.000
96.234.000
53.262.000
146.124.000
(155.518.000)
(29.607.000)
14.261.000
110.495.000
Date
12/31/2015
12/30/2015
12/29/2015
12/28/2015
12/24/2015
12/23/2015
12/22/2015
12/21/2015
12/18/2015
12/17/2015
12/16/2015
12/15/2015
12/14/2015
12/11/2015
12/10/2015
12/9/2015
12/8/2015
12/7/2015
12/4/2015
12/3/2015
12/2/2015
12/1/2015
11/30/2015
11/27/2015
11/25/2015
11/24/2015
11/23/2015
11/20/2015
11/19/2015
11/18/2015
11/17/2015
11/16/2015
11/13/2015
11/12/2015
11/11/2015
11/10/2015
11/9/2015
11/6/2015
11/5/2015
11/4/2015
11/3/2015
11/2/2015
10/30/2015
10/29/2015
10/28/2015
10/27/2015
Adj Close
2043,940
2063,360
2078,360
2056,500
2060,990
2064,290
2038,970
2021,150
2005,550
2041,890
2073,070
2043,410
2021,940
2012,370
2052,230
2047,620
2063,590
2077,070
2091,690
2049,620
2079,510
2102,630
2080,410
2090,110
2088,870
2089,140
2086,590
2089,170
2081,240
2083,580
2050,440
2053,190
2023,040
2045,970
2075,000
2081,720
2078,580
2099,200
2099,930
2102,310
2109,790
2104,050
2079,360
2089,410
2090,350
2065,890
Holding Period Return of Two Years
10,58%
10/26/2015
10/23/2015
10/22/2015
10/21/2015
10/20/2015
10/19/2015
10/16/2015
10/15/2015
10/14/2015
10/13/2015
10/12/2015
10/9/2015
10/8/2015
10/7/2015
10/6/2015
10/5/2015
10/2/2015
10/1/2015
9/30/2015
9/29/2015
9/28/2015
9/25/2015
9/24/2015
9/23/2015
9/22/2015
9/21/2015
9/18/2015
9/17/2015
9/16/2015
9/15/2015
9/14/2015
9/11/2015
9/10/2015
9/9/2015
9/8/2015
9/4/2015
9/3/2015
9/2/2015
9/1/2015
8/31/2015
8/28/2015
8/27/2015
8/26/2015
8/25/2015
8/24/2015
8/21/2015
8/20/2015
2071,180
2075,150
2052,510
2018,940
2030,770
2033,660
2033,110
2023,860
1994,240
2003,690
2017,460
2014,890
2013,430
1995,830
1979,920
1987,050
1951,360
1923,820
1920,030
1884,090
1881,770
1931,340
1932,240
1938,760
1942,740
1966,970
1958,030
1990,200
1995,310
1978,090
1953,030
1961,050
1952,290
1942,040
1969,410
1921,220
1951,130
1948,860
1913,850
1972,180
1988,870
1987,660
1940,510
1867,610
1893,210
1970,890
2035,730
8/19/2015
8/18/2015
8/17/2015
8/14/2015
8/13/2015
8/12/2015
8/11/2015
8/10/2015
8/7/2015
8/6/2015
8/5/2015
8/4/2015
8/3/2015
7/31/2015
7/30/2015
7/29/2015
7/28/2015
7/27/2015
7/24/2015
7/23/2015
7/22/2015
7/21/2015
7/20/2015
7/17/2015
7/16/2015
7/15/2015
7/14/2015
7/13/2015
7/10/2015
7/9/2015
7/8/2015
7/7/2015
7/6/2015
7/2/2015
7/1/2015
6/30/2015
6/29/2015
6/26/2015
6/25/2015
6/24/2015
6/23/2015
6/22/2015
6/19/2015
6/18/2015
6/17/2015
6/16/2015
6/15/2015
2079,610
2096,920
2102,440
2091,540
2083,390
2086,050
2084,070
2104,180
2077,570
2083,560
2099,840
2093,320
2098,040
2103,840
2108,630
2108,570
2093,250
2067,640
2079,650
2102,150
2114,150
2119,210
2128,280
2126,640
2124,290
2107,400
2108,950
2099,600
2076,620
2051,310
2046,680
2081,340
2068,760
2076,780
2077,420
2063,110
2057,640
2101,490
2102,310
2108,580
2124,200
2122,850
2109,990
2121,240
2100,440
2096,290
2084,430
6/12/2015
6/11/2015
6/10/2015
6/9/2015
6/8/2015
6/5/2015
6/4/2015
6/3/2015
6/2/2015
6/1/2015
5/29/2015
5/28/2015
5/27/2015
5/26/2015
5/22/2015
5/21/2015
5/20/2015
5/19/2015
5/18/2015
5/15/2015
5/14/2015
5/13/2015
5/12/2015
5/11/2015
5/8/2015
5/7/2015
5/6/2015
5/5/2015
5/4/2015
5/1/2015
4/30/2015
4/29/2015
4/28/2015
4/27/2015
4/24/2015
4/23/2015
4/22/2015
4/21/2015
4/20/2015
4/17/2015
4/16/2015
4/15/2015
4/14/2015
4/13/2015
4/10/2015
4/9/2015
4/8/2015
2094,110
2108,860
2105,200
2080,150
2079,280
2092,830
2095,840
2114,070
2109,600
2111,730
2107,390
2120,790
2123,480
2104,200
2126,060
2130,820
2125,850
2127,830
2129,200
2122,730
2121,100
2098,480
2099,120
2105,330
2116,100
2088,000
2080,150
2089,460
2114,490
2108,290
2085,510
2106,850
2114,760
2108,920
2117,690
2112,930
2107,960
2097,290
2100,400
2081,180
2104,990
2106,630
2095,840
2092,430
2102,060
2091,180
2081,900
4/7/2015
4/6/2015
4/2/2015
4/1/2015
3/31/2015
3/30/2015
3/27/2015
3/26/2015
3/25/2015
3/24/2015
3/23/2015
3/20/2015
3/19/2015
3/18/2015
3/17/2015
3/16/2015
3/13/2015
3/12/2015
3/11/2015
3/10/2015
3/9/2015
3/6/2015
3/5/2015
3/4/2015
3/3/2015
3/2/2015
2/27/2015
2/26/2015
2/25/2015
2/24/2015
2/23/2015
2/20/2015
2/19/2015
2/18/2015
2/17/2015
2/13/2015
2/12/2015
2/11/2015
2/10/2015
2/9/2015
2/6/2015
2/5/2015
2/4/2015
2/3/2015
2/2/2015
1/30/2015
1/29/2015
2076,330
2080,620
2066,960
2059,690
2067,890
2086,240
2061,020
2056,150
2061,050
2091,500
2104,420
2108,100
2089,270
2099,500
2074,280
2081,190
2053,400
2065,950
2040,240
2044,160
2079,430
2071,260
2101,040
2098,530
2107,780
2117,390
2104,500
2110,740
2113,860
2115,480
2109,660
2110,300
2097,450
2099,680
2100,340
2096,990
2088,480
2068,530
2068,590
2046,740
2055,470
2062,520
2041,510
2050,030
2020,850
1994,990
2021,250
1/28/2015
1/27/2015
1/26/2015
1/23/2015
1/22/2015
1/21/2015
1/20/2015
1/16/2015
1/15/2015
1/14/2015
1/13/2015
1/12/2015
1/9/2015
1/8/2015
1/7/2015
1/6/2015
1/5/2015
1/2/2015
12/31/2014
12/30/2014
12/29/2014
12/26/2014
12/24/2014
12/23/2014
12/22/2014
12/19/2014
12/18/2014
12/17/2014
12/16/2014
12/15/2014
12/12/2014
12/11/2014
12/10/2014
12/9/2014
12/8/2014
12/5/2014
12/4/2014
12/3/2014
12/2/2014
12/1/2014
11/28/2014
11/26/2014
11/25/2014
11/24/2014
11/21/2014
11/20/2014
11/19/2014
2002,160
2029,550
2057,090
2051,820
2063,150
2032,120
2022,550
2019,420
1992,670
2011,270
2023,030
2028,260
2044,810
2062,140
2025,900
2002,610
2020,580
2058,200
2058,900
2080,350
2090,570
2088,770
2081,880
2082,170
2078,540
2070,650
2061,230
2012,890
1972,740
1989,630
2002,330
2035,330
2026,140
2059,820
2060,310
2075,370
2071,920
2074,330
2066,550
2053,440
2067,560
2072,830
2067,030
2069,410
2063,500
2052,750
2048,720
11/18/2014
11/17/2014
11/14/2014
11/13/2014
11/12/2014
11/11/2014
11/10/2014
11/7/2014
11/6/2014
11/5/2014
11/4/2014
11/3/2014
10/31/2014
10/30/2014
10/29/2014
10/28/2014
10/27/2014
10/24/2014
10/23/2014
10/22/2014
10/21/2014
10/20/2014
10/17/2014
10/16/2014
10/15/2014
10/14/2014
10/13/2014
10/10/2014
10/9/2014
10/8/2014
10/7/2014
10/6/2014
10/3/2014
10/2/2014
10/1/2014
9/30/2014
9/29/2014
9/26/2014
9/25/2014
9/24/2014
9/23/2014
9/22/2014
9/19/2014
9/18/2014
9/17/2014
9/16/2014
9/15/2014
2051,800
2041,320
2039,820
2039,330
2038,250
2039,680
2038,260
2031,920
2031,210
2023,570
2012,100
2017,810
2018,050
1994,650
1982,300
1985,050
1961,630
1964,580
1950,820
1927,110
1941,280
1904,010
1886,760
1862,760
1862,490
1877,700
1874,740
1906,130
1928,210
1968,890
1935,100
1964,820
1967,900
1946,170
1946,160
1972,290
1977,800
1982,850
1965,990
1998,300
1982,770
1994,290
2010,400
2011,360
2001,570
1998,980
1984,130
9/12/2014
9/11/2014
9/10/2014
9/9/2014
9/8/2014
9/5/2014
9/4/2014
9/3/2014
9/2/2014
8/29/2014
8/28/2014
8/27/2014
8/26/2014
8/25/2014
8/22/2014
8/21/2014
8/20/2014
8/19/2014
8/18/2014
8/15/2014
8/14/2014
8/13/2014
8/12/2014
8/11/2014
8/8/2014
8/7/2014
8/6/2014
8/5/2014
8/4/2014
8/1/2014
7/31/2014
7/30/2014
7/29/2014
7/28/2014
7/25/2014
7/24/2014
7/23/2014
7/22/2014
7/21/2014
7/18/2014
7/17/2014
7/16/2014
7/15/2014
7/14/2014
7/11/2014
7/10/2014
7/9/2014
1985,540
1997,450
1995,690
1988,440
2001,540
2007,710
1997,650
2000,720
2002,280
2003,370
1996,740
2000,120
2000,020
1997,920
1988,400
1992,370
1986,510
1981,600
1971,740
1955,060
1955,180
1946,720
1933,750
1936,920
1931,590
1909,570
1920,240
1920,210
1938,990
1925,150
1930,670
1970,070
1969,950
1978,910
1978,340
1987,980
1987,010
1983,530
1973,630
1978,220
1958,120
1981,570
1973,280
1977,100
1967,570
1964,680
1972,830
7/8/2014
7/7/2014
7/3/2014
7/2/2014
7/1/2014
6/30/2014
6/27/2014
6/26/2014
6/25/2014
6/24/2014
6/23/2014
6/20/2014
6/19/2014
6/18/2014
6/17/2014
6/16/2014
6/13/2014
6/12/2014
6/11/2014
6/10/2014
6/9/2014
6/6/2014
6/5/2014
6/4/2014
6/3/2014
6/2/2014
5/30/2014
5/29/2014
5/28/2014
5/27/2014
5/23/2014
5/22/2014
5/21/2014
5/20/2014
5/19/2014
5/16/2014
5/15/2014
5/14/2014
5/13/2014
5/12/2014
5/9/2014
5/8/2014
5/7/2014
5/6/2014
5/5/2014
5/2/2014
5/1/2014
1963,710
1977,650
1985,440
1974,620
1973,320
1960,230
1960,960
1957,220
1959,530
1949,980
1962,610
1962,870
1959,480
1956,980
1941,990
1937,780
1936,160
1930,110
1943,890
1950,790
1951,270
1949,440
1940,460
1927,880
1924,240
1924,970
1923,570
1920,030
1909,780
1911,910
1900,530
1892,490
1888,030
1872,830
1885,080
1877,860
1870,850
1888,530
1897,450
1896,650
1878,480
1875,630
1878,210
1867,720
1884,660
1881,140
1883,680
4/30/2014
4/29/2014
4/28/2014
4/25/2014
4/24/2014
4/23/2014
4/22/2014
4/21/2014
4/17/2014
4/16/2014
4/15/2014
4/14/2014
4/11/2014
4/10/2014
4/9/2014
4/8/2014
4/7/2014
4/4/2014
4/3/2014
4/2/2014
4/1/2014
3/31/2014
3/28/2014
3/27/2014
3/26/2014
3/25/2014
3/24/2014
3/21/2014
3/20/2014
3/19/2014
3/18/2014
3/17/2014
3/14/2014
3/13/2014
3/12/2014
3/11/2014
3/10/2014
3/7/2014
3/6/2014
3/5/2014
3/4/2014
3/3/2014
2/28/2014
2/27/2014
2/26/2014
2/25/2014
2/24/2014
1883,950
1878,330
1869,430
1863,400
1878,610
1875,390
1879,550
1871,890
1864,850
1862,310
1842,980
1830,610
1815,690
1833,080
1872,180
1851,960
1845,040
1865,090
1888,770
1890,900
1885,520
1872,340
1857,620
1849,040
1852,560
1865,620
1857,440
1866,520
1872,010
1860,770
1872,250
1858,830
1841,130
1846,340
1868,200
1867,630
1877,170
1878,040
1877,030
1873,810
1873,910
1845,730
1859,450
1854,290
1845,160
1845,120
1847,610
2/21/2014
2/20/2014
2/19/2014
2/18/2014
2/14/2014
2/13/2014
2/12/2014
2/11/2014
2/10/2014
2/7/2014
2/6/2014
2/5/2014
2/4/2014
2/3/2014
1/31/2014
1/30/2014
1/29/2014
1/28/2014
1/27/2014
1/24/2014
1/23/2014
1/22/2014
1/21/2014
1/17/2014
1/16/2014
1/15/2014
1/14/2014
1/13/2014
1/10/2014
1/9/2014
1/8/2014
1/7/2014
1/6/2014
1/3/2014
1/2/2014
12/31/2013
1836,250
1839,780
1828,750
1840,760
1838,630
1829,830
1819,260
1819,750
1799,840
1797,020
1773,430
1751,640
1755,200
1741,890
1782,590
1794,190
1774,200
1792,500
1781,560
1790,290
1828,460
1844,860
1843,800
1838,700
1845,890
1848,380
1838,880
1819,200
1842,370
1838,130
1837,490
1837,880
1826,770
1831,370
1831,980
1848,360
Cost of Debt Determination (Based ont eh Weighted Average Yield)
Name
Intl Busn Machs 5.7%
Intl Busn Machs 3.625%
Intl Busn Machs 1.875%
Intl Busn Machs 7.625%
Intl Busn Machs 3.375%
Intl Busn Machs 1.125%
Intl Busn Machs 3.45%
Intl Busn Machs 1.625%
Intl Busn Machs 1.8%
Intl Busn Machs 4%
Intl Busn Machs
Intl Busn Machs 2.875%
Intl Busn Machs 1.375%
Intl Busn Machs 1.25%
Intl Busn Machs
Intl Busn Machs 1.875%
Intl Busn Machs 2.5%
Intl Busn Machs 1.25%
Intl Busn Machs 1.25%
Intl Busn Machs 2.75%
Intl Busn Machs 2.25%
Intl Busn Machs 2.875%
Intl Busn Machs
Intl Busn Machs
Intl Busn Machs 1.9%
Intl Busn Machs 1.95%
Intl Busn Machs
Intl Busn Machs 8.375%
Intl Busn Machs 5.6%
Intl Busn Machs 4.7%
Intl Busn Machs 1.875%
Intl Busn Machs 5.875%
Intl Busn Machs 7%
Intl Busn Machs
Intl Busn Machs 3.3%
Intl Busn Machs 2.9%
Intl Busn Machs
Intl Busn Machs
Intl Busn Machs 6.22%
Intl Busn Machs 2.2%
Intl Busn Machs 2.625%
Intl Busn Machs 0.3%
Intl Busn Machs 7.125%
Maturity Date
9/14/2017
2/12/2024
11/6/2020
10/15/2018
8/1/2023
2/6/2018
2/19/2026
5/15/2020
5/17/2019
6/20/2042
11/6/2021
11/7/2025
11/19/2019
5/26/2023
9/7/2021
8/1/2022
1/27/2022
2/8/2018
2/6/2017
12/21/2020
2/19/2021
11/9/2022
8/18/2017
9/6/2024
1/27/2020
2/12/2019
2/12/2019
11/1/2019
11/30/2039
2/19/2046
5/15/2019
11/29/2032
10/30/2025
3/7/2028
1/27/2027
11/1/2021
1/27/2020
2/6/2018
8/1/2027
2/10/2017
8/5/2022
11/2/2026
12/1/2096
Amont
(In Million)
3000,00
2000,00
1618,30
1600,00
1500,00
1500,00
1350,00
1250,00
1200,00
1107,30
1100,00
1078,90
1078,90
1078,90
1078,90
1000,00
1000,00
1000,00
1000,00
938,10
900,00
900,00
900,00
809,20
750,00
750,00
750,00
750,00
745,10
650,00
600,00
600,00
600,00
539,40
500,00
500,00
500,00
500,00
468,60
384,70
375,20
373,70
316,40
Current
Market Price
102,60
103,10
100,00
109,30
102,30
99,70
101,30
98,60
100,20
97,50
100,50
100,00
100,00
100,00
100,00
95,70
100,20
100,00
100,00
100,00
99,90
100,90
100,10
100,00
99,90
100,70
100,40
117,20
121,20
107,80
100,40
125,60
127,70
100,00
99,30
102,00
100,10
99,90
124,70
99,90
105,20
100,00
144,70
Coupon Rate
(%)
5,70
3,63
1,88
7,63
3,38
1,13
3,45
1,63
1,80
4,00
1,46
2,88
1,38
1,25
0,50
1,88
2,50
1,25
1,25
2,75
2,25
2,88
0,00
1,13
1,90
1,95
1,27
8,38
5,60
4,70
1,88
5,88
7,00
1,75
3,30
2,90
0,00
1,07
6,22
2,20
2,63
0,30
7,13
Intl Busn Machs 6.5%
Intl Busn Machs 8%
Intl Busn Machs 7%
1/15/2028
10/15/2038
10/30/2045
313,00
83,00
27,00
131,00
145,20
139,70
6,50
8,00
7,00
Weighted Average Yield)
Weighted
YTM (%)
1,33
3,13
1,88
2,03
2,98
1,42
3,28
2,08
1,69
4,16
1,46
2,88
1,38
1,25
0,50
2,72
2,46
1,29
2,03
2,75
2,29
2,71
0,00
1,13
1,94
1,62
1,27
1,90
4,15
4,23
1,69
3,72
3,32
1,75
3,38
2,45
0,00
1,07
3,40
7,42
1,63
0,30
4,89
Outstnading
Market Value
(Milion)
3078,00
2062,00
1618,30
1748,80
1534,50
1495,50
1367,55
1232,50
1202,40
1079,62
1105,50
1078,90
1078,90
1078,90
1078,90
957,00
1002,00
1000,00
1000,00
938,10
899,10
908,10
900,90
809,20
749,25
755,25
753,00
879,00
903,06
700,70
602,40
753,60
766,20
539,40
496,50
510,00
500,50
499,50
584,34
384,32
394,71
373,70
457,83
Weight
0,0725
0,0486
0,0381
0,0412
0,0362
0,0352
0,0322
0,0291
0,0283
0,0254
0,0261
0,0254
0,0254
0,0254
0,0254
0,0226
0,0236
0,0236
0,0236
0,0221
0,0212
0,0214
0,0212
0,0191
0,0177
0,0178
0,0177
0,0207
0,0213
0,0165
0,0142
0,0178
0,0181
0,0127
0,0117
0,0120
0,0118
0,0118
0,0138
0,0091
0,0093
0,0088
0,0108
Weighted
YTM (%)
0,0965
0,1521
0,0715
0,0837
0,1078
0,0501
0,1057
0,0604
0,0479
0,1059
0,0381
0,0731
0,0350
0,0318
0,0127
0,0614
0,0581
0,0304
0,0478
0,0608
0,0485
0,0580
0,0000
0,0215
0,0343
0,0288
0,0226
0,0394
0,0883
0,0699
0,0240
0,0661
0,0600
0,0222
0,0396
0,0295
0,0000
0,0126
0,0468
0,0672
0,0152
0,0026
0,0528
Market Value of Debt
Total Debt (In million)
Less: Adjustment
Total long-term debt (In million)
3,14
4,66
4,52
410,03
120,52
37,72
42426,19
0,0097
0,0028
0,0009
1,0000
0,0303
0,0132
0,0040
2,2281
ue of Debt
42.426,19
0,00
42426,19
Cost of Equity (Under CAPM Approach)
Market Return
10,58%
Risk Free Rate
2,47%
Market Risk Premium
8,11%
Beta (Based on Yahoo Finance)
0,88
Equity Risk Premium
7,14%
Cost of Equity
9,61%
Market Value of Equity
Per Share Value at Reporting Date
Share Outstanding at Reporting Date
Total Value of Equity (In million)
132,56
978,74
129742,37
WACC Calculation
Sources of Funds
Equity
Debt
WACC
Market Value
(in Million)
129742,37
42426,19
Weight
75,36%
24,64%
Cost of
Fund
9,61%
2,23%
Tax Rate
35,00%
After Tax
Weighted
Cost of Fund Average Cost
9,61%
1,45%
7,24%
0,36%
7,60%
References
Investing. (2017). Retrieved February 04, 2017, from U.S. 10-Year Bond Yield: https://www.investing.com/rates-bonds/u.s.-10
IBM. (2017). Retrieved February 02, 2017, from IBM Annual Report 2015: http://www.ibm.com/annualreport/2015/assets/img
Annual-Report-2015.pdf
IBM. (2017). Retrieved February 02, 2017, from IBM Annual Report 2014:
https://www.ibm.com/investor/att/pdf/IBM_Annual_Report_2014.pdf
Morningstar. (2017). Retrieved February 03, 2017, from International Business Machines Corp (IBM): Bond:
http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=ibm
Yahoo Finance. (2017). Retrieved February 03, 2017, from International Business Machines Corporation (IBM): Income State
https://finance.yahoo.com/q/is?s=IBM+Income+Statement&annual
Yahoo Finance. (2016). Retrieved February 03, 2017, from International Business Machines Corporation (IBM): Balance Shee
https://finance.yahoo.com/q/bs?s=IBM+Balance+Sheet&annual
Yahoo Finance. (2017). Retrieved February 03, 2017, from S&P 500 (^GSPC): Historical Data:
https://finance.yahoo.com/quote/%5EGSPC/history?period1=1388426400&period2=1451498400&interval=1d&filter=history&
Yahoo Finance. (2017). Retrieved February 04, 2017, from International Business Machines Corporation (IBM): Summary:
https://finance.yahoo.com/quote/IBM?p=IBM
Yahoo Finance. (2017). Retrieved February 03, 2017, from International Business Machines Corporation (IBM): Historical Pri
https://finance.yahoo.com/quote/IBM/history?period1=1451498400&period2=1486317600&interval=1d&filter=history&frequ
ng.com/rates-bonds/u.s.-10-year-bond-yield
nualreport/2015/assets/img/2016/02/IBM-
M): Bond:
ation (IBM): Income Statement:
ation (IBM): Balance Sheet:
nterval=1d&filter=history&frequency=1d
ation (IBM): Summary:
ation (IBM): Historical Prices:
=1d&filter=history&frequency=1d
WACC
OF
INTEL INCORPORATION
Agenda






About IBM
Capital Structure of IBM
Cost of debt of IBM
Cost of Equity of IBM
Weighted Average Cost of Capital of IBM
Strength and Limitation of Analysis
About Company
 Establishment: In 1911 by Charles Ranlett Flint
 Head Office: North Castle of New York
 Products: Computer, hardware, software, and
Information Technology (IT) services &
consultancy
 Enlisting: NYSE
Capital Structure of IBM
 Equity component
 Debt Component
Cost of Debt of IBM
 Estimate of Cost of Debt: Weighted average of the
YTM of the outstanding debts of the company.
 Estimated Cost of Debt: 2.23%
Cost of Equity
WACC of IBM
Strength and Limitation of Analysis
 Data Quality
 Data Authenticity
The End
FIN515: Week 7 Project – Capital Budgeting Analysis …
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