Question

what is the wacc for amerisourcebergen?

Income Statement	9/30/17
Sales	$153,144.00
Cost Of Goods	$148,598.00
Gross Profit	$4,546.00
Selling & Adminstrative & Depr. & Amort Expenses	$3,486.00
Income After Depreciation & Amortization	$1,060.00
Non-Operating Income	$3.00
Interest Expense	$145.00
Pretax Income	$918.00
Income Taxes	$553.00
Minority Interest	$0.00
Investment Gains/Losses	$0.00
Other Income/Charges	$0.00
Income From Cont. Operations	$364.00
Extras & Discontinued Operations	$0.00
Net Income	$364.00
Depreciation Footnote	9/30/17
Income Before Depreciation & Amortization	$1,493.00
Depreciation & Amortization (Cash Flow)	$432.00
Income After Depreciation & Amortization	$1,060.00
Earnings Per Share Data	9/30/17
Average Shares	$221.60
Diluted EPS Before Non-Recurring Items	$5.88
Diluted Net EPS	$1.64

Wacc for AmerisourceBergen

Balance Sheet	9/30/17
Assets
Cash & Equivalents	2,435
Receivables	10,303
Notes Receivable	0
Inventories	11,461
Other Current Assets	103
Total Current Assets	24,303
Net Property & Equipment	1,798
Investments & Advances	0
Other Non-Current Assets	0
Deferred Charges	0
Intangibles	8,878
Deposits & Other Assets	338
Total Assets	35,316
Liabilities & Shareholders Equity	9/30/17
Notes Payable	0
Accounts Payable	25,404
Current Portion Long-Term Debt	12
Current Portion Capital Leases	0
Accrued Expenses	1,402
Income Taxes Payable	0
Other Current Liabilities	0
Total Current Liabilities	26,818
Mortgages	0
Deferred Taxes/Income	2,493
Convertible Debt	0
Long-Term Debt	3,782
Non-Current Capital Leases	0
Other Non-Current Liabilities	160
Minority Interest (Liabilities)	0
Total Liabilities	33,252
Shareholders Equity	9/30/17
Preferred Stock	0
Common Stock (Par)	3
Capital Surplus	4,518
Retained Earnings	2,395
Other Equity	-96
Treasury Stock	4,755
Total Shareholder's Equity	2,064
Total Liabilities & Shareholder's Equity	35,316
Total Common Equity	2,064
Shares Outstanding	217.9
Book Value Per Share	9.47
Fiscal Year end is Septempber
Figures in millions except EPS data

Cash Flow Statement	9/30/17
Cash Flow From Operations, Investments & Financial
Activities
Net Income (Loss)	364.48
Depreciation/Amortization & Depletion	432.33
Net Change from Assets/Liabilities	467.15
Net Cash from Discontinued Operations	0
Other Operating Activities	240.17
Net Cash From Operating Activities	1,504.14
Property & Equipment	-466.4
Acquisition/ Disposition of Subsidiaries	-49.55
Investments	14.8
Other Investing Activities	3.11
Net Cash from Investing Activities	-498.04
Fiscal Year end is Septempber
Figures in millions except EPS data

Answer 1

Answer ) WACC = Weight of equity* Cost of equity + Weight of debt* Cost of debt

Cost of equity = EPS / Average Value of share  

Cost of Debt = Interest paid / Value of debt

Weight of equity = Total value of Equity / total value of capital

Weight of debt = Total value of debt / total value of capital

As per given data ,

Average Shares	$221.60		Long-Term Debt	3,782		interest Expense	$145.00		weight of equity	0.353062
EPS	$5.88		Total Shareholder's Equity	2,064		Cost of debt	3.8340%		weight of debt	0.646938
Cost of equity	2.6534%		Total capital	5,846

WACC = 3.4172% = 3.42%