(1) D.G.

khan Cement Company

Financial Report (2018)
Link: https://financials.psx.com.pk/#

Data 2018 (Rupees - 000)

No: of Shares = 438.12m

Market price = 73.79
D5 = last five years dividend = 3.5
Do = 4.25
Debt = 222478 m
Kd (1-0.29) = 7.98% + Kibor 11.38 = 19.56%
D5 (1 + g)5 = Do
3.5 (1 + g)5 = 4.25
G = (4.25/3.5)1/5 - 1 = 3.96%
𝑫𝐨 (𝟏+𝒈)
Ke = ( + 𝒈) × 𝟏𝟎𝟎
𝒑𝒐

𝟒.𝟐𝟓(𝟏.𝟎𝟑𝟗𝟔)
Ke = + 3.96 X 100
𝟕𝟑.𝟕𝟗

Ke = 9.95%

Now we find the We

Number of Shares × Share Price

We =
Par Value
 𝟒𝟑𝟖.𝟏𝟐𝐦 × 𝟕𝟑.𝟕𝟗
E= = 3232.98
𝟏𝟎

Wd Wd
WACC = Kd(1 − T) + Ke
𝑊𝑑 + 𝑊𝑒 𝑊𝑑 + 𝑊𝑒

𝟑𝟐𝟑𝟐. 𝟖𝟗 𝟐𝟐𝟐. 𝟓𝟏
𝐖𝐀𝐂𝐂 = { × 𝟗. 𝟗𝟓% } + 𝟏𝟗. 𝟓𝟔(𝟏 − 𝟎. 𝟐𝟗)𝑿 { }
𝟑𝟐𝟑𝟐. 𝟖𝟗 + 𝟐𝟐𝟐. 𝟓𝟏 𝟑𝟐𝟑𝟐. 𝟖𝟗 + 𝟐𝟐𝟐. 𝟓𝟏

Wacc = 10.20%
 (2) ICI Pakistan ltd
Financial Report (2018)
Link: https://financials.psx.com.pk/#

Data 2018 (Rupees - 000)

No: of Shares = 92.36m

Market price = 625.71
D5 = last five years dividend = 8
Do = 16.5
Debt = 9200.541 m
Kd (1-0.29) = 11.58% Kibor + 0.5% = 12.08%
D5 (1 + g)5 = Do
G = (16.5/8)1/5 - 1 = 15.57%
𝑫𝐨 (𝟏+𝒈)
Ke = ( + 𝒈) × 𝟏𝟎𝟎
𝒑𝒐

𝟏𝟔.𝟓(𝟏.𝟏𝟓𝟓𝟕)
Ke = + 3.96 X 100
𝟔𝟐𝟓.𝟕𝟏

Ke = 18.62%
Now we find the We

Number of Shares × Share Price

We =
Par Value

𝟗𝟐.𝟑𝟔𝐦 × 𝟔𝟐𝟓.𝟕𝟏
E= = 5779.06m
𝟏𝟎

Wd Wd
WACC = Kd(1 − T) + Ke
𝑊𝑑 + 𝑊𝑒 𝑊𝑑 + 𝑊𝑒

𝟓𝟕𝟕𝟗. 𝟎𝟔 𝟗𝟐𝟎𝟎. 𝟓𝟒𝟏

𝐖𝐀𝐂𝐂 = { × 𝟏𝟖. 𝟔𝟐% } + 𝟏𝟐. 𝟎𝟖$(𝟏 − 𝟎. 𝟐𝟗)𝑿 { }
𝟓𝟓𝟕𝟗. 𝟎𝟔 + 𝟗𝟐𝟎𝟎. 𝟓𝟒𝟏 𝟓𝟕𝟕𝟗. 𝟎𝟔 + 𝟗𝟐𝟎𝟎. 𝟓𝟒𝟏

Wacc = 12.451%