Case Study Requirements
Using the data depicted,
1– Write a short statement explaining how you perceive the performance of Walgreens during
2014, and assess the management strategy in managing key performance indicators.
2– Using the following Data:
Leverage 0 25% 50% 100%
Equity
Debt
Total
EBIT@ 12%
Cost of Equity
Cost of Debt 10% 10% 10% 10%
Market Value of Debt
Market Value of Equity
Value of Walgreens
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Calculate:
1. Missing Data in the Table
2. The Weighted Average Cost of Capital under Different Leverage Scenarios.
How do you assess Walgreens financial performance under the above statistics, and
performance measures?
Assess the best “Dividend Payment Scheme”, and explain why.
Using The Following Table, Calculate :
The Value of the Firm
The Fair Price per Share
The WACC
Comment on the results of your calculations, and suggest corrective actions if needed
