SALESIANOS S.A.

Se le da la siguiente información para el SALESIANOS S.A.

EBIT= 8,000.00
Ru= 15%
D= 14,000.00
Rd= 12%
TC= 20%
In the company has structured its capital entirely throught equity, shouldt it consider leverage?
Would it decrease the WACC including 14,000 of debt in the capital structure?

Vu= EBIT - Taxes =EBITx (1-Tx)

Ru Ru

42,667
From M&M Proposition I with taxes, we know tha the value of the firm with debt is:

VL= Vu + Tx x D

45,467
Because the firm is worth 45,467 total and the debt is worth 14,000 EBIT=
Ru=
VL = D+E E= VL - D D=
Rd=
31,467 TC=

Based on M&M Proposition II with taxes, the cost of equity is:

Re= Ru + ( Ru- Rd) x ( D/E) x ( 1-Tx)

Re= 16.07%

Finally, the wacc is:

WACC = (E/V) x Re + (D/V) x Rdx (1-Tx)

WACC= 14.08% RU = 15%

 8,000.00
15%
14,000.00
12%
20%

15%
Flujo de caja libre típico:

Flujo de caja libre en el mundo M&M:

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