What was the wacc for heinz at the start of fiscal year

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Reference no: EM13862787

Case: H. J. Heinz.

Assume you are a team of finance specialists at the H. J.Heinz Company who have been assigned by the company's Vice President of Finance, Chris Donley, to evaluate the company's weighted average cost of capital (WACC) in light of recent changes in the market. In your group report to the VP of Finance, you need to answer the following questions, using data from the case and Technical Note:Cost of Capital in 2012

1) What were the yields on the two representative outstanding Heinz debt issues as the end of April 2010? What were they one year earlier?

2) What was the WACC for Heinz at the start of fiscal year 2010? What was the WACC one year earlier?

3) What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del MonteFoods? How do these WACCs influenceyour thinking about the WACC for Heinz?

4) What is your opinion about the most defensible WACC calculation?

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Reference no: EM13862787

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