Part A asks us to calculate WACC. This is how I think about it:
Operating excl pension plan
debt return=3% value=$500m
equity return=3%+2*9%=21% value=$500m
Pension plan
Debt return=3% value=800*40%=320m
equity return=3+9% value=480m
hence, WACC=weighted average of 4 returns above=(5/18)*3%+(5/18)*21%+(3.2/18)*3%+(4.8/18)*12%=10.4%
Can someone tell me why this is wrong? Thanks. |
发表于 2013-4-22 08:28
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