lucasv_mccormick_2014

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Vince Lucas MBAD 511V Course Project-MKC

Introduction:

McCormick and Company INC. is located in Sparks, Maryland. McCormick has been in

existence for over one hundred years. McCormick is a world leader in the manufacturing,

marketing, and distribution of flavor enhancing products such as seasonings, various spices, and

condiments. McCormick operates mainly in North America, Europe, and China. The company is

segregated into two divisions, a consumer division and an industrial division. Both divisions

included, McCormick ensures it has a product that can participate in any eating occasion.

McCormick offers a wide range of products to suit the needs of any customers. McCormick’s

consumer division spans over more than 125 countries. Their customers span all forms of food

retail including all variations from a traditional grocery store to a discount drug store.

McCormick trademarks include various household names such as McCormick®, Lawry’s®, and

Club House®. McCormick also caters to various ethnic seasoning and spices for Europe, Middle

East, and Africa (EMEA). From the consumer division McCormick has 40% to 60% share of sales

within their market. McCormick competes with over 250 brands within the United States

alone. McCormick’s industrial division services food manufacturers and foodservice customers

on a multinational plane. The competitors in the industrial division span all nationalities but

have a limited range of flavor opportunities. In the consumer division, Wal-Mart Stores

accounted for 12% of sales in 2013. Pepsi accounted for 11% of sales in the industrial division.

The common raw material for McCormick is various vegetables, peppers, rice, dairy products,

and soybean oil.

Cost of Capital:

I computed a weighted average cost of capital on McCormick. I used various creditable

websites listed from my instructor to gain pertinent information. I have an understanding that

http://www.valueline.com/ or Value Line is most reputable for Beta’s. I researched the website

and found McCormick’s Beta to be listed at 0.6. It always seems to add validity by cross

referencing data from other source. I researched a creditable website

http://pages.stern.nyu.edu/~adamodar/ or Damodaran online to check asset beta for Food

Processing industry. Damodaran website had a listed asset beta of 0.69 for Food Processing

Industry. I calculated my debt to equity ratio to compute asset beta for given beta from Value

Line website, ensuring the Value Line beta was in the same ballpark of the other source. My

calculations were computed an asset beta of 0.55. I proceeded ahead; there was no unusual

variance from the data. I segregated my computation into Cost or Equity, Cost of Debt,

Weights, and WACC. I used Value Line beta, a risk free rate taken from the daily US Treasury 10

year yield on a bond. Data was taken from website http://www.treasury.gov/resource-

center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield which was 2.79%.

The last piece of information needed was a Market Risk Premium for the US, which is 5% this

year. The calculated cost of equity using the formula Cost of Equity = Risk Free + beta*MRP =

5.79%. I moved on to my cost of debt which included checking the public debt of McCormick at

the website http://www.finra.org/. Finra had six bonds listed, five of which had all maturity

http://www.valueline.com/

http://pages.stern.nyu.edu/~adamodar/

http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

http://www.finra.org/

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dates, yields, and outstanding debt. I computed yield versus weight of each bond to calculate

cost of debt before tax rate. I computed from all bonds listed that McCormick had public debt

of 4.63%. I checked the financial information from the most current 10-K statement that was

submitted to the SEC and cross referenced with the balance sheet from

http://money.msn.com/. MSN gives all information except for Operating Lease Obligation

which has to be calculated from the 10-K. I ran all computations including Operating Lease

Obligation to gain knowledge of my debt to equity ratio or weights of the firm. My company

was currently being managed at a 12.53%/87.47% ratio. My computation ended with a value of

5.44% required rate of return. I used formula COE(E/V)+COD(D/V)*(1-0.35). McCormick WACC

computed with industry average asset beta leveraged with same D/E ratio computed to 6.10%.

My WACC is viable and realistic.

Continued Next Page

MCCORMICK WACC

Cost of Equity: Unleveraged Beta:

0.54889

Rf 2.79

MRP 5

Beta 0.6

= 5.79

Cost of Debt:

Bond Symbol Yield Amount Outstanding Weight YTM*Weight Length Length*Weight

MKC.GP 3.9 250,000,000.00 25.77% 1.005154639 2684 691.7525773

MKC.GL 5.2 200,000,000.00 20.62% 1.072164948 645 132.9896907

MKC.GN 5.75 250,000,000.00 25.77% 1.481958763 1376 354.6391753

MKC4040682 3.5 250,000,000.00 25.77% 0.902061856 3462 892.2680412

MKC.GH 8.03 20,000,000.00 2.06% 0.16556701 3874 79.87628866

Total 970,000,000.00 100.00% 4.626907216 2151.525773

5.894591159 Years

Cost of Debt After Tax: 3.01

http://money.msn.com/

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Next I computed the WACC’s per division. This was a tedious process. McCormick has

40% to 60% of all sales dealing with spices and seasonings within their consumer division. I had

to apply “Pure Plays” within the food processing consumer division. This included anyone

dealing with major retail from giants to discount mom and pop drug stores. I chose Hershey

and General Mills for my two pure plays within the consumer division. Hershey sells and deals

with the same customers as McCormick with all variations and sizes of retail. My similarity as a

pure play for choosing Hershey is Hershey’s raw materials and customers are very similar. Their

nature of business is similar as well and the financial similarities are close. The Cost of Equity

were the same, The Cost of Debt had a small variance, and D/E ratio of 7.71%/92.29% versus

12.53%/87.47%. My computed WACC for Hersey was 5.36% which was similar to McCormick.

For my second pure play I chose General Mills. General Mills deals in many types of food to the

same customers of McCormick; all mass retail to the small discount drug store. The raw

materials were similar in nature to dairy products and whole grains. Financially similar, the two

had beta’s respectively of 0.55 versus 0.60, cost of debt had small variance, and General Mills

carried a D/E 21.38%/78.62% versus 12.53%/87.47%. The WACC for General Mills was

computed at 4.77%. All pertinent information was viable; same industry and similar betas for

all companies. The variance was in how the different companies managed their debt to equity

ratio. On my two pure plays, one managed more debt than McCormick and one managed less

Shares, Balance Sheet, and Operating Lease Adjustment:

Total Oustanding Shares 132,050,000.00 Operating Lease:

Price Per Share 66.95

Equity from Shares 8,840,747,500.00 Year Operating Lease PV

1 17.1 16.3433

2 17.1 15.62009

Deferred Income Tax 139,300,000.00 3 6.5 5.674723

Minority Interest 15,200,000.00 4 6.5 5.42361

5 6.5 5.183609

6+ 8.9 6.783482

Equity = 8,995,247,500.00

LT Debt 1,019,000,000.00 55.02882

Current/Short Term Debt 214,100,000.00

Operating Lease 55,028,820.00

Debt = 1,288,128,820.00

Value = 10,283,376,320.00

Weights:

Shareholders Own 0.8747

Debtholders Own 0.1253

WACC = 5.4417%

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debt than McCormick. All in all it seemed a balanced valuation of the consumer division. My

calculation for the consumer division was a simple computation of the two computed WACC’s

averaged together for a representation of the consumer industry. The averaged WACC

representing the consumer division was 5.07%.

The industrial division had to be viewed differently. I had to find two similar companies

within the food processing industry that offered inputs similar to raw materials being entered

to complete a finished product. An example of McCormick’s industry division servicing a

customer would be my one said company at Simmons Prepared Foods. At our facility, we

dedicate a whole production line to marinating chicken for a large customer. We marinate with

McCormick’s Marinate. Our marinating line is running if the doors are open. Marinated

chicken is big business. My first pure play was Archer Daniels Midland. Archer Daniels Midland

processes and sells agricultural commodities to many businesses. Examples would be flour,

corn, corn meal, vegetable oils, cocoa, sugar, etc. Archer Daniels Midland financially obtained

more risk than the consumer division of McCormick, but they are still in the food processing

industry. It would have more risk than that of a business that is not correlated directly with the

retail market. Archer Daniels Midland beta was a 0.9. It had a cost of equity of 7.2%, cost of

debt of 3.76, and a D/E ratio of 20.43%/79.57%. The computed WACC was 6.22%. Financially it

makes sense that an industrial division would have more risk than a consumer division. An

industrial division is dealing with actual food processing companies not consumer retail stores.

Another aspect at risk is as far as raw materials, the more raw the material, the more is

probably going to be categorized as a commodity. The second pure play was Nestle. Nestle is

a large company that services many industries within food processing industry. Nestle does

offer food seasoning. I felt a pertinent pure play on my industrial division due to the fact of the

industrial businesses Nestle caters to in the food processing industry with regard to food

seasoning. The similarities are McCormick controls so much market share within its niche in the

food processing industry. It is large in its own segment of food processing industry. I wanted to

compare McCormick to someone large from an industrial standpoint. Nestle is large. I had to

keep that in mind when looking at the financials. Nestlé’s cost of equity was 6.2% with a beta at

0.7. Nestlé’s cost of debt was 3.41%, and managed a D/E ratio of 4.05%/95.95%. Nestle has a

computed WACC of 6.04%. After the two industrial division pure play WACC’s were calculated

and averaged, I had a computed WACC for my industrial division of 6.13%.

Next, with data gained from McCormick’s 10-K statement, I ran computation with data

to assign percentages to divisions. Then I had to assume percent of sales were correlated to

value or assets with the overall aspect of the company. Consumer division maintained 61.6% of

the company while industrial division maintained 38.4% of the company in regards of the two

divisions representing the company as a whole. I weighted the two divisional WACC’s by 61.6%

for consumer division and 38.4% for industrial division. My computed WACC from both

divisions was represented by 5.48%. I had a difference of 0.04% in absolute terms between

company WACC and divisional WACC’s. The percent difference, or relative terms, was 0.66%. I

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am confident that all financial computations of divisions represent the company of a whole.

Please see tables as follows.

Weights of Pure Plays:

Consumer WACC

Average

Hershey 5.3683

General Mills 4.7712 5.07

Industrial WACC

Nestle 6.0389

Archer Danials 6.2165 6.13

Divisional Appropriations by Total Net Sales

McCormick Net Sales 2013 4123.4

Consumer Division Sales 2538

Industrial Division Sales 1585.4

Consumer Division % 61.6%

Industrial Division % 38.4%

Weights from 10-K are Percent Sales by Division = 61.6% consumer and

38.4% Industrial:

McCormick WACC = 5.44% = 3.12% + 2.35%

5.48%

Reality check

Absolute 0.04%

Relative 0.66%

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Performance Analysis:

I have listed various measures of performance for McCormick below in will give an

analysis on all pertinent information.

I collected data from my 10-K statement to compute Book Value (EVA) and Market Value (EVA).

Book Value (EVA) is a computed financial metric that determines one said corporation or

company created value throughout their history. I had to compute various pieces in order to

obtain my value for my Book Value (EVA). I used a formula, NOPLAT, which stand for net

operating profit less adjusted taxes minus the product of my computed WACC and INVESTED

CAPITAL to obtain value of Book Value (EVA). McCormick’s Book Value (EVA) was $173.15

million. The value indicates that McCormick has created value for their investors throughout

the history of their company. McCormick had a Return on Capital of 10.47% associated with

their Book Value (EVA). Next, I moved to the valuation of Market Value (EVA). It is a metric

NOPLAT, Invested Capital, Book EVA, and Market EVA:

NOPLAT BOOK EVA:

Operating Income(EBIT) 550.5 NOPLAT 360.37

Taxes -192.675 Invested Capital 3441.63

Operating Lease Interest 2.55 WACC 5.44%

NOPLAT 360.37

EVA = 173.15

Invested Capital

Operating Current Assets 1370.2 ROC = 10.47%

-Operating Current Liabilities -1063.1

=Net Working Capital 307.1 *Created Extraordinary Value

+Property,plant, and equipment, net 576.6

+Investment and other fixed assets 371 MARKET EVA

+Goodwill 1798.5 NOPLAT 360.37

+Intangibles assets, net 333.4 Value 10283

+Operating Lease Debt 55.03 WACC 5.44%

INVESTED CAPITAL 3441.63

EVA = -199.02

DIVISIONAL BOOK EVA Consumer Industrial

% Sales 61.6% 38.4% ROC = 3.50%

NOPLAT 221.99 138.38 *Currently underperforming for Investors

INVESTED CAPITAL 2120.04 1321.59

WACC 5.07% 6.13% ROA

EVA 114.50 57.37 EBIT 550.5

Book Assets 4449.7

ROA = 12.37%

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that will determine how McCormick is performing at present. My computation had one small

variation. I substituted the Value of McCormick from WACC for INVESTED CAPITAL. McCormick

had a Market Value (EVA) of -$199.02. The number is interesting, due to the fact that it is a

negative value. We look at McCormick presently, and it has a calculated Return on Assets of

12.37%. It looks to be performing well for investors. But, Market Value (EVA) is a ratio based

the total value of the company with regards to the cost of equity and the cost of debt. It is a

more accurate measure of how McCormick performed on what was required for its investors.

Investors require McCormick to return at minimum 5.44% for Return on Capital. McCormick

only returned 3.5% for Return on Capital at present. It is destroying value of 5.44% minus 3.5%

which equals 1.94% for its investors. McCormick is currently underperforming for its investors.

In order to have deeper understanding of McCormick, I evaluated the Book Value (EVA)

for my two divisions. I could study the divisions and determine if one division was creating

value and another was destroying value. I applied the same approach as I did with “Pure

Plays.” I kept the same proportion within the company. Consumer still represented 61.6% and

Industrial still represented 38.4%. I appropriated the same proportions in regards to NOPLAT

and INVESTED CAPITAL. I used the WACC’s assigned to the two divisions. I ran computation

and computed values for both divisions using the same formula I used for the company. The

Divisional Book Value (EVA)’s were $114.50 million for Consumer division and $57.37 million for

Industrial division. It was nothing particular about data. I would believe the divisional WACC’s

being close would be the reason the divisions both still performed well when assessed by Book

Value (EVA). I ran an analysis on McCormick versus their industry and economy for the last 5

years. I researched and collected data from most recent 10-K statement.

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The graph illustrates if one said investor investing $100 five years ago into McCormick would

have a total return of over $250. 150% return of your initial money invested over a five year

period. Listed in the graph, McCormick was listed against the S&P 500. McCormick performed

well in money invested in their company compared to how the S&P was performing, which

would be a decent measure of our economy. McCormick was also listed against the S&P Food

and Meats Industry for which McCormick is a member. It is a good valuation on how

McCormick faired versus its competitors within its industry. McCormick outperformed its

completion as well. The only bias of the graph that concerns me is of how much growth was

obtained in this period. At the beginning of the period we were beginning a long recession at

the time and one could only think we could go in direction since we were so close to the

bottom. But, keeping in retrospect, McCormick outperformed economy and competition when

placed head to head. For more validation I went to Damodaran’s website to see what

McCormick’s Return on Equity was compared to its industry. The data is just for one year but it

would be a good litmus test on validation unless something extremely out of ordinary took

place within one year. Damodaran had industry at 15.94% and I calculated McCormick’s Return

on Equity from 10-K statement. I found a net income of 389 million and total book equity of

1,947.7 million which computed to 19.97% Return on Equity. McCormick was above industry

average by 4.03%.

Moving Forward:

Moving forward I would concentrate on one metric, McCormick’s Market Value (EVA).

As of now McCormick is destroying value for its investors. McCormick is underperforming

1.94% what is required from its investors. The genius of the Market Value (EVA) is, as investor,

it is simply how one can challenge what one said company is performing at the present versus

the one said company’s required rate of return. It is metric that allows us to know exactly how

we are performing on what is required of the company per its investors. In order to improve

our Market Value (EVA), look at the value of the company in regards to equity and debt, WACC,

and NOPLAT. I would look at possible processes to lower WACC. One possible scenario would

be recapitalization or managing more debt within the company. McCormick is currently at a

12.53/87.47 D/E ratio, which all data presently computes to a WACC of 5.44%. If McCormick’s

executives decided to manage more debt and increased ratio of D/E to 20%/80%, it would

compute after adjusting asset beta and changing D/E ratio to a WACC of 5.39%. We would have

a lower hurdle to cross for its investors. Another caveat would be an additional tax deduction

for more debt in our D/E ratio. It is not a big change but does propagate something beneficial

for the company and investors. Now, I would look at ways to increase NOPLAT. First, I would

look at sales and ensure I was clearly connecting with all customers. I would want more

differentiated or customized products. I would concentrate on only what our company can do

versus all competitors and do it exceedingly well. Next, in my short existence, I see people

frivolously waste money on non-effective costs. I use the example of paper towels in your

company’s facilities. How much do you spend? How much do Competitors spend? Are we

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paying more for paper towels than everyone else? I see daily people and companies throw

money away on waste. Mostly due to the fact no one is managing the small areas. Everyone

wants the big American Dream of hitting big home runs, but nobody is content with just getting

on base. I believe any company will be more efficient and more profitable if that one said

company manages cost at even the smallest level. It has to be part of your company’s culture

to be thrifty and produce high quality products. I would evaluate or audit cost at a company

level. I would want to know where I was at every level. I would make adjustments as necessary

and reward individual employees who cut costs. Once cost is cut your NOPLAT has to increase

because your operating income will increase. Overall, McCormick is a stable company in a

stable industry. I would advise McCormick to an investor who is not willing to incur much risk;

likely an investor in their golden years. I think McCormick will issue dividends and have small

steady growth. As a young investor, I feel I am chasing money. The money has already been

made. Keep in mind I fully believe “Bears make money, Bulls make money, and Pigs get

slaughtered.” I believe for a young investor there are better returns in better investments

without much more risk involved.

Vince Lucas

*All financial information and other company information from McCormick’s 10-K was taken

from http://www.sec.gov/Archives/edgar/data/63754/000006375414000008/mkc-

11302013x10k.htm

http://www.sec.gov/Archives/edgar/data/63754/000006375414000008/mkc-11302013x10k.htm

http://www.sec.gov/Archives/edgar/data/63754/000006375414000008/mkc-11302013x10k.htm

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CONSOLIDATED INCOME STATEMENT

for the year ended November 30 (millions except per share data) 2013 2012 2011

Net sales $ 4,123.4 $ 4,014.2 $ 3,697.6

Cost of goods sold 2,457.6 2,396.4 2,175.1

Gross profit 1,665.8 1,617.8 1,522.5

Selling, general and administrative expense 1,075.0 1,039.5 982.2

Special charges 25.0 — —

Loss on voluntary pension settlement 15.3 — —

Operating income 550.5 578.3 540.3

Interest expense 53.3 54.6 51.2

Other income, net 2.2 2.4 2.3

Income from consolidated operations before income taxes 499.4 526.1 491.4

Income taxes 133.6 139.8 142.6

Net income from consolidated operations 365.8 386.3 348.8

Income from unconsolidated operations 23.2 21.5 25.4

Net income $ 389.0 $ 407.8 $ 374.2

Earnings per share–basic $ 2.94 $ 3.07 $ 2.82

Earnings per share–diluted $ 2.91 $ 3.04 $ 2.79

See Notes to Consolidated Financial Statements.

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CONSOLIDATED BALANCE SHEET

at November 30 (millions) 2013 2012

Assets

Cash and cash equivalents

$ 63.0

$ 79.0

Trade accounts receivable, less allowances of $4.1 for 2013 and $4.0 for 2012 495.5 465.9

Inventories 676.9 615.0

Prepaid expenses and other current assets 134.8 125.5

Total current assets 1,370.2 1,285.4

Property, plant and equipment, net 576.6 547.3

Goodwill 1,798.5 1,695.3

Intangible assets, net 333.4 323.5

Investments and other assets 371.0 313.9

Total assets $ 4,449.7 $ 4,165.4

Liabilities

Short-term borrowings

$ 211.6

$ 140.3

Current portion of long-term debt 2.5 252.3

Trade accounts payable 387.3 375.8

Other accrued liabilities 461.7 419.2

Total current liabilities 1,063.1 1,187.6

Long-term debt 1,019.0 779.2

Other long-term liabilities 419.9 498.4

Total liabilities 2,502.0 2,465.2

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Shareholders’ equity

Common stock, no par value; authorized 320.0 shares; issued and outstanding: 2013–12.1 shares, 2012–12.4 shares

Common stock non-voting, no par value; authorized 320.0 shares; issued and outstanding:

2013–119.0 shares, 2012–120.1 shares

352.8

332.6

575.6

609.6

Retained earnings 970.4 934.6

Accumulated other comprehensive loss (0.3) (159.9 )

Non-controlling interests 15.2 17.3

Total shareholders’ equity 1,947.7 1,700.2

Total liabilities and shareholders’ equity $ 4,449.7 $ 4,165.4

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WACC’s of Pure Plays:

Hersey

Cost of Equity:

Rf 2.7

MRP 5

Beta 0.6

= 5.7

Cost of Debt:

Bond Symbol Yield Amount Outstanding Weight YTM*Weight

HSY4006947 3.49 250000000.00 14.71% 0.513235294

HSY.GA 3.24 100000000.00 5.88% 0.190588235

HSY.GK 0.719 250,000,000.00 14.71% 0.105735294

HSY.GF 0.554 250,000,000.00 14.71% 0.081470588

HSY.GJ 2.529 350,000,000.00 20.59% 0.520676471

HSY.GH 0.9 250,000,000.00 14.71% 0.132352941

HSY.GE 4.095 250,000,000.00 14.71% 0.602205882

Total 1,700,000,000.00 100.00% 2.146264706

Operating Lease:

Total Oustanding Shares 223,580,000.00

Price Per Share 106.25 Year Operating LeasePresent Value

Equity from Shares 23,755,375,000.00 1 11.521 11.27851

2 10.891 10.43737

3 7.563 7.095434

Deferred Income Tax 104,200,000.00 4 2.184 2.005853


Equity = 23,870,775,000.00

32.23775

LT Debt 1,795,100,000.00

Current/Short Term Debt 166,900,000.00


Debt = 1,994,237,746.55 D/E 0.083543067

Value = 25,865,012,746.55



WACC = 5.3683%

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General Mills

Rf = 0.0267

Beta = 0.55

MRP = 0.05

Cost of Equity 0.0267 + (0.55*0.05)

Cost of Equity 0.0542

Risk of Debt = Risk Free + Default Spread

Cost of Debt = 2.67+1.00 3.67

10 TN + A- Rating

Total Oustanding Shares 624,540,000.00 Operating Lease:


Equity from Shares 31,014,656,400.00 Year Operating Lease PV

1 67.55 65.15868

2 67.55 62.85201

Deferred Income Tax 1,450,000,000.00 3 47.35 42.49724


5 114.5 95.61807

Equity = 32,917,756,400.00

307.1188

LT Debt 6,740,600,000.00

Current/Short Term Debt 1,904,100,000.00


Debt = 8,951,818,800.00

D/E 0.271945

Value = 41,869,575,200.00



WACC = 4.7712%

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Archer Danials

Cost of Equity:

Rf 2.7

MRP 5

Beta 0.9

= 7.2

Cost of Debt:

Bond Symbol Yield Amount Outstanding Weight YTM*Weight

ADM.GL 4.552 182,213,000.00 3.69% 0.16799655

ADM.GV 3.1 750,000,000.00 15.19% 0.470914116

ADM.GW 4.519 595,796,000.00 12.07% 0.545329104

ADM396370 4.538 570,425,000.00 11.55% 0.524302338

ADM.GD 0.909 295,300,000.00 5.98% 0.054368341

ADM.GI 4.409 123,580,000.00 2.50% 0.110358818

ADM.GT 1.709 700,000,000.00 14.18% 0.242303035

ADM3827213 4.517 527,581,000.00 10.69% 0.482678539

ADM.GJ 5.877 172,103,000.00 3.49% 0.204862696

ADM.GO 4.601 420,208,000.00 8.51% 0.391593344

ADM.GP 4.685 600,000,000.00 12.15% 0.569350357

Total 4,937,206,000.00 100.00% 3.764057239

Operating Lease:

Total Oustanding Shares 657,970,000.00

Price Per Share 43.06 Year Operating Lease PV

Equity from Shares 28,332,188,200.00 1 195 187.9336931

2 171 159.1072294

3 132 118.4717042

Deferred Income Tax 1,282,000,000.00 4 82 70.99069995

Minority Interest 28,000,000.00 5 227 189.5659643

Equity = 29,642,188,200.00

726.069291

LT Debt 5,364,000,000.00

Current/Short Term Debt 1,520,000,000.00


Debt = 7,610,069,210.00 D/E 0.25673102

Value = 37,252,257,410.00



WACC = 6.2165%

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Nestle

Cost of Equity:

Rf 2.7

MRP 5

Beta 0.7

= 6.2

Cost of Debt:

Risk of Debt = Risk Free + Default Spread

Cost of Debt = 2.70+0.71 3.41

10 TN + Aa2 Rating

Total Oustanding Shares 3,283,000,000.00


Equity from Shares 244,255,200,000.00

Deferred Income Tax 0.00

Minority Interest 1,564,000,000.00

Equity = 245,819,200,000.00

LT Debt 10,363,000,000.00

Current/Short Term Debt 0.00

Operating Lease

Debt = 10,363,000,000.00

Value = 256,182,200,000.00 D/E 0.042157



WACC = 6.0389%

lucasv_mccormick_2014

Documents

consumer division mccormick

mccormick trademarks

mccormicks beta

value line beta

listed asset beta

cost of debt

risk free beta

value line website