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Income Statement-Balance Sheet

WACC

NAME:
Cost of Capital Enter the date of your calculation Calculate the WACC for Steel Dynamics Inc. using the same methodology we covered in class
Enter inputs in yellow cells. with data from Thomson Reuter’s Eikon.
Key Output of Valuation: On the column C under Suggested Sources in orange cells enter the detailed source as illustrated for cell C10.
Estimated WACC = ERROR:#DIV/0!
What is Steel Dynamics’ WACC ?
Inputs to Estimate WACC Inputs Suggested Sources
Show the formulas in the orange section referencing the cells in green.
Enter Current Market Value for Equity Make the calculations in the turquoise cells. (3 points)
Current stock price Thomson Reuters/Overview/
Number of shares common stock outstanding
Market value of common stock $0
Enter Current Market Value for Long-Term Debt
Estimated value of long-term debt
Enter Current Market Value for Short-Term Debt
Estimated value of short-term debt
Enter Current Market Value for Preferred Stock
Estimated value of lpreferred stock $0
Author: If you can observe the number of shares of preferred stock and the current price of the firm’s preferred stock, then enter the market value for preferred stock here. Otherwise, use the default value, which is the amount of preferred stock shown on the Actual balance sheet.
Estimate Percent of Firm that will be Financed by Long-term Debt
Current percent of firm financed with long-term debt ERROR:#DIV/0!
Target percent financed with long-term debt= ERROR:#DIV/0!
Author: The default value is the current percent financed with long-term debt, unless the current value is less than 15% or greater than 40%.
Estimate Percent of Firm that will be Financed by Preferred Stock
Current percent of firm financed with preferred stock ERROR:#DIV/0!
Target percent financed with preferred stock = ERROR:#DIV/0!
Author: The default value is equal to the current value.
Estimate Percent of Firm that will be Financed by Short-term Debt
Current percent of firm financed with short-term debt ERROR:#DIV/0!
Target percent financed with short-term debt = ERROR:#DIV/0!
Author: The default value is equal to the current value, unless the combined short-term and long-term debt exceed 40%, in which case the short-term debt is set so that the combined rate is 40%.
Author: If you can observe the market value for short-term debt, then enter it here. Otherwise, use the default value, which is the amount of short-term debt shown on the Actual balance sheet C36+C38+C39. Author: If you can observe the number of shares of preferred stock and the current price of the firm’s preferred stock, then enter the market value for preferred stock here. Otherwise, use the default value, which is the amount of preferred stock shown on the Actual balance sheet. Estimate Cost of E