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    Finance Project WACC - Ball

    Uploaded by

    Amar Ayoub
    This document contains calculations to derive the beta and weighted average cost of capital (WACC) for Ball Corporation (BLL). It provides monthly stock price and return data for BLL and the S&P 500 over a 60 month period. It then calculates BLL's beta based on this data. It also includes calculations for BLL's cost of equity using the capital asset pricing model (CAPM) and cost of debt. Using these costs and the market value of BLL's common stock and long-term debt, it determines the weights for equity and debt and calculates BLL's WACC to be 7.25%.

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    © All Rights Reserved
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    Finance Project WACC - Ball

    Uploaded by

    Amar Ayoub
    24 views4 pages
    This document contains calculations to derive the beta and weighted average cost of capital (WACC) for Ball Corporation (BLL). It provides monthly stock price and return data for BLL and the S&P 500 over a 60 month period. It then calculates BLL's beta based on this data. It also includes calculations for BLL's cost of equity using the capital asset pricing model (CAPM) and cost of debt. Using these costs and the market value of BLL's common stock and long-term debt, it determines the weights for equity and debt and calculates BLL's WACC to be 7.25%.

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    financial analysis

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    Finance Project WACC_Ball

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    This document contains calculations to derive the beta and weighted average cost of capital (WACC) for Ball Corporation (BLL). It provides monthly stock price and return data for BLL and the S&P 500 over a 60 month period. It then calculates BLL's beta based on this data. It also includes calculations for BLL's cost of equity using the capital asset pricing model (CAPM) and cost of debt. Using these costs and the market value of BLL's common stock and long-term debt, it determines the weights for equity and debt and calculates BLL's WACC to be 7.25%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    24 views4 pages

    Finance Project WACC - Ball

    Uploaded by

    Amar Ayoub
    This document contains calculations to derive the beta and weighted average cost of capital (WACC) for Ball Corporation (BLL). It provides monthly stock price and return data for BLL and the S&P 500 over a 60 month period. It then calculates BLL's beta based on this data. It also includes calculations for BLL's cost of equity using the capital asset pricing model (CAPM) and cost of debt. Using these costs and the market value of BLL's common stock and long-term debt, it determines the weights for equity and debt and calculates BLL's WACC to be 7.25%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Ball Corporation

    Beta and WACC Derivation

    Date SP500 S&P Return BLL Adj Price BLL Return


    10/1/2013 1756.54 22.79
    11/1/2013 1805.81 2.80% 23.30 2.23%
    12/1/2013 1848.36 2.36% 24.21 3.90%
    1/1/2014 1782.59 -3.56% 23.99 -0.91%
    2/1/2014 1859.45 4.31% 26.03 8.54%
    3/1/2014 1872.34 0.69% 25.80 -0.88%
    4/1/2014 1883.95 0.62% 26.45 2.52%
    5/1/2014 1923.57 2.10% 28.42 7.42%
    6/1/2014 1960.23 1.91% 29.64 4.29%
    7/1/2014 1930.67 -1.51% 28.97 -2.27%
    8/1/2014 2003.37 3.77% 30.31 4.64%
    9/1/2014 1972.29 -1.55% 30.04 -0.89%
    10/1/2014 2018.05 2.32% 30.59 1.83%
    11/1/2014 2067.56 2.45% 31.84 4.10%
    12/1/2014 2058.90 -0.42% 32.49 2.04%
    1/1/2015 1994.99 -3.10% 30.19 -7.10%
    2/1/2015 2104.50 5.49% 34.18 13.23%
    3/1/2015 2067.89 -1.74% 33.79 -1.14%
    4/1/2015 2085.51 0.85% 35.12 3.92%
    5/1/2015 2107.39 1.05% 33.96 -3.30%
    6/1/2015 2063.11 -2.10% 33.68 -0.83%
    7/1/2015 2103.84 1.97% 32.57 -3.29%
    8/1/2015 1972.18 -6.26% 31.64 -2.84%
    9/1/2015 1920.03 -2.64% 29.98 -5.25%
    10/1/2015 2079.36 8.30% 33.02 10.13%
    11/1/2015 2080.41 0.05% 33.46 1.34%
    12/1/2015 2043.94 -1.75% 35.19 5.17%
    1/1/2016 1940.24 -5.07% 32.33 -8.11%
    2/1/2016 1932.23 -0.41% 32.04 -0.90%
    3/1/2016 2059.74 6.60% 34.63 8.06%
    4/1/2016 2065.30 0.27% 34.67 0.13%
    5/1/2016 2096.95 1.53% 35.12 1.29%
    6/1/2016 2098.86 0.09% 35.24 0.35%
    7/1/2016 2173.60 3.56% 34.45 -2.24%
    8/1/2016 2170.95 -0.12% 38.60 12.06%
    9/1/2016 2168.27 -0.12% 40.08 3.83%
    10/1/2016 2126.15 -1.94% 37.69 -5.95%
    11/1/2016 2198.81 3.42% 36.71 -2.61%
    12/1/2016 2238.83 1.82% 75.42 105.43%
    1/1/2017 2278.87 1.79% 37.42 -50.38%
    2/1/2017 2363.64 3.72% 36.08 -3.58%
    3/1/2017 2362.72 -0.04% 36.57 1.35%
    4/1/2017 2384.20 0.91% 37.87 3.54%
    5/1/2017 2411.80 1.16% 40.29 6.39%
    6/1/2017 2423.41 0.48% 41.68 3.46%
    7/1/2017 2470.30 1.93% 41.37 -0.73%
    8/1/2017 2471.65 0.05% 39.49 -4.56%
    9/1/2017 2519.36 1.93% 40.89 3.54%
    10/1/2017 2575.26 2.22% 42.50 3.95%
    11/1/2017 2584.84 0.37% 39.51 -7.03%
    12/1/2017 2673.61 3.43% 37.57 -4.92%
    1/1/2018 2823.81 5.62% 37.99 1.14%
    2/1/2018 2713.83 -3.89% 39.65 4.36%
    3/1/2018 2640.87 -2.69% 39.51 -0.35%
    4/1/2018 2648.05 0.27% 39.89 0.96%
    5/1/2018 2705.27 2.16% 36.76 -7.83%
    6/1/2018 2718.37 0.48% 35.47 -3.53%
    7/1/2018 2816.29 3.60% 38.88 9.62%
    8/1/2018 2901.52 3.03% 41.78 7.47%
    9/1/2018 2913.98 0.43% 43.99 5.29%
    10/1/2018 2658.69 -8.76% 43.39 -1.36%
    WACC Calculation
    S&P 500 BLL
    COUNT 60 60
    MEAN 0.74% 2.08%
    STDEV 2.99% 15.88%
    CORREL W/ S&P 1.00 0.16
    BETA 1.0000 0.8540

    Cost of Equity
    Risk Free rate of return 3.36%Retrieved from U.S Department of Treasury
    Market Rate 6.50%
    Beta 0.854
    Cost of Equity (CAPM) 8.92%

    Cost of Debt
    Earmings Before Taxes 514,000,000 All information retrieved from EDGAR 10-K Report
    Taxes 165,000,000
    Income tax rate 32.10%
    BLL bond YTM 10/23/18 4.94% Retrieved from FINRA market website
    Cost of Debt (After Tax) 3.35%

    Weight Calculations
    Closing Price $45.11 SEC.gov
    Shares Outstanding 339,191,000 NASDAQ.com
    Common Stock Financing $15,300,906,010.00
    Long Term Debt Financing $ 6,518,000,000.00
    Total Financing $21,818,906,010.00
    Weight (Common Stock) 70.13%
    Weight (Debt) 29.87%

    WACC
    Cost of Equity 8.92%
    Cost of Debt 3.35%
    Weight of Equity 70.13%
    Weight of Debt 29.87%

    Weighted Average Cost of Capital 7.25%


    rom EDGAR 10-K Report

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