WACC of companies in primary, energy & goods industries
The objective of this research is to calculate and evaluatethe weighted average cost of capital (WACC) of New Zealand listing companies in primary, energy and goods industries. First, there will be a briefintroductionof the main categories and companies in primary, energy and goods industries in New Zealand. Then, WACC will be explained and the usefulness of WACC will be provided. Followed by is the WACC of each New Zealand listing company in primary, energy and goods industries, and then WACC will be summarised by each industry. Finally, the research will be concluded.
The assignment is required to work out the WACC of New Zealand listing companies in primary, energy and goods industries. First, it is important to know the definitions, categories and companies of these three industries in New Zealand. Primary industryis an industry that “processes raw materials for conversion by secondary industry into goods or services sold by tertiary industry to provide goods or services to consumers” (Wiktionary, 2010, p. 1). There are four main constituents in primary industry of New Zealand: Agriculture & Fishing, Mining, Forestry & Forest Products, and Building Materials & Construction (NZX, 2010). Specifically, there are six NZ listing companies under Agriculture & Fishing. The companies are as follow:
There are five NZ listing companies under Mining:
There are just one NZ listing company under Forestry & Forest Products:
There are three NZ listing companies underBuilding Materials & Construction:
The energy industry is a term “for all of the industries involved the production and sale of energy, including fuel extraction, manufacturing, refining and distribution” (Wikipedia, 2010, p. 1).There are seven NZ listing companies under energy industry (NZX, 2010):
Good industryis an industry that produces goods for the consumption of...