Wacc is the rate used to discount a company's future cash flows to their value today (aka present value.
General motors co engages in the designing, manufacturing, and selling of cars, trucks, and automobile parts it also provides automotive financing services through general motors financial company, inc the firm operates through the following segments: gm north america, gm international, and gm financial. Example for wacc: suppose that general motors (gm) has common equity of $355 billion and $319 billion of long term debt and $103 billion of preferred equity on its books required return on these funds are 12%, 8%, and 10%, respectively market values of the common equity and long term debt are $466 billion and $35 billion, respectively.
The weighted average cost of capital (wacc) is the rate that a company is expected to pay on average to all its security holders to finance its assets the wacc is commonly referred to as the firm's cost of capital generally speaking, a company's assets are financed by debt and equity. Speed-gm - game & voice control panel waac - sgm login ×.
Gm᾽s cost of equity (capm) and weighted average cost of capital (wacc) calculations the formula that is used for cost of equity is the risk free rate + (beta(market rate- risk free rate) (obaidullah, para 6) according to the us department of treasury (2015) the risk free interest in 2013 was 004% (p 1.
Get 1 month access to general motors co for $1399, or get full access to whole website for at least 3 months from $4999. In 2009, the obama administration bailed out general motors co (nyse: gm) it was a crucial part of the recovery process for both gm and the automotive industry as a whole it was a crucial part of the recovery process for both gm and the automotive industry as a whole.
According to morningstar's calculations, gm's current wacc is 86%, and its roic didn't exceed the cost of capital until 2012 what's the plan gm has a few strategies in place to make its business more efficient and thus improve the return on every invested dollar.