Assignment: Financial Case Analysis
Heinz Case
Remember: you are providing an analysis to Heinz insiders to help them make an informed decision. Please consider addressing the following questions in your summary:
1. How to estimate the WACC for Heinz at the start of fiscal year 2010? What was the WACC one year earlier? As you do this, carefully note the points of judgment or assumptions made in the calculation. A small simple table/paragraph summarizing the weights, cost of debt and cost of equity, and WACCs might be useful.
2. What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del Monte Foods? Based on your findings, how do these comparable firms' WACCs influence your thinking about the WACC for Heinz?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.