WACC Finance

Overview

task in this assignment is to estimate the weighted average cost of capital (WACC)

for a company listed on TADAWUL; each student should work on a different company from the

rest of the group. The company must be listed in the TADAWUL for at least five years and must

have debt. Do the following:

Use the most recent annual Income Statement and Balance Sheet to calculate the cost of

debt or use yield to maturity if the company has public bonds.

Use the monthly or weekly returns on the stock for the past 5 years (January 1st, 2020, to

December 31st, 2024) to compare against the monthly returns on the TASI Index for the

same period.

In calculating the market capitalization of the company, use the last observation in your

sample as the stock price (December 31st, 2024), and obtain the number of outstanding

shares.

When calculating WACC, assume no corporate tax in one scenario and 20% in the other,

as shown in the Spreadsheet.

Assume that the risk-free rate (Rf) is 4.5%.

Risk-premium of the market (equity risk premium for Saudi Arabia) can be obtained

from the Damodaran webpage or Bloomberg.

Requirements:

1. Follow the steps laid out in Project-SpreadSheet.xlsx, including calculating the cost of

debt, cost of equity, and the weights of debt and equity.

2. Include the stock price data, your return calculations, CAPM model estimation on the

second spreadsheet “EstBeta”. Provide all necessary documentations of your work, if needed.I will upload necessary documents .