Professional Documents
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2009:
short-term debt: $61,297,000
Long-term debt (current): $4,341,000
total: $65,638,000
Long-Term Debt
2009:
2009:
Shares Outstanding: 314,860,000
Stock Price of Heinz: $34.42
Debt + Equity
2009:
Total debt: $5,141,824,000
Debt+Equity: $15,979,305,200.00
Weight
total debt: 32.18%
Market Value of Equity: 67.82%
Kraft
Financial Summary
Market Data
Beta 0.65
Shares outstanding (in millions) 1,735
WACC: 6.28%
2010:
Short-term debt: $43,853,000
Long-term debt (current): $15,167,000
Total: $59,020,000
2010
2010:
Shares Outstanding: 317,690,000
Stock Price of Heinz: $46.87
2010:
Total Debt: $4,618,172,000
Debt+Equity: $19,508,302,300.00
Campbell Del
Soup Monte
7,589 3,739
728 1,827
2,624 1,290
0.55 0.70
363 182
35.64 15.11
A BB
4.36% 6.19%
6.72% 7.54%
3.05% 4.33%
2,624 1,290
12,937.32 2,750.02
15,561.32 4,040.02
16.86% 31.93%
83.14% 68.07%
6.10% 6.52%
Exhibit 1
H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Income Statement
(numbers in thousands except per-share amounts; fiscal year ends in April)
(1)
The 20-year yield is used for 2003–05, when the 30-year was not issued.
Note that bond data were slightly modified for teaching purposes.
Data sources: Federal Reserve, Value Line, Morningstar, and case writer estimates.
Exhibit 4
H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Comparable Firm Data
Campbell Del
Kraft Soup Monte
Financial Summary
Revenues (in millions of dollars) 40,386 7,589 3,739
Book value of equity (in millions of dollars) 25,972 728 1,827
Book value of debt (in millions of dollars) 18,990 2,624 1,290
Market Data
Beta 0.65 0.55 0.70
Shares outstanding (in millions) 1,735 363 182
Share price (dollars as of close April 30, 2010) 29.90 35.64 15.11
Typical Standard & Poor’s bond rating BBB− A BB
Representative yield on long-term debt 5.12% 4.36% 6.19%
Data sources: Value Line; H. J. Heinz SEC filings, 2008–10; case writer estimates; Morningstar.
Heinz Stock Price and Normalized S&P 500 Index
Price Normalized Index
60
50
40
30
20
10
0
05 05 05 05 05 05 06 06 06 06 06 06 06 06 06 07 07 07 07 07 07 07 07 07 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 10 10 10
/20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
2 3 5 5 7 8 9 0 3 5 6 7 8 0 1 2 5 6 8 9 0 1 2 4 4 7 8 9 1 1 3 4 5 6 0 1 2 3 4 6 7 8 1 2
5/ 6/1 7/2 9/ 0/1 1/2 1/ 2/2 4/ 5/1 6/2 8/ 9/1 0/3 2/1 1/2 3/ 4/1 5/2 7/ 8/2 10/ 1/1 2/2 2/ 3/1 4/2 6/ 7/2 9/ 0/1 1/2 1/ 2/1 3/3 5/1 6/2 8/ 9/1 0/2 12/ 1/1 3/ 4/1
1 1 1 1 1 1 1 1 1
Figure 1 Data
H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
U.S. Federal Reserve Data for Figure 1