What were WBC’s financing costs in fiscal 2018 related to?

What were WBC’s financing costs in fiscal 2018 related to?

  1. Based on the information from WBC’s 2018 Annual Report what are WBC’spriorities for fiscal 2019? How have they financed their growth in the past and do they plan on requiring financing for their growth in fiscal 2019? (5 marks)
  2. What were WBC’s financing costs in fiscal 2018 related to? Will these costs continue? (3)
  3. Historically, what were the main sources of long-term financing for WBC? Were there any stipulations/restrictions on these sources? Be sure to fully describe all sources. (5)
  4. Identify 3different possible sources of long-term financing for WBC. What are two advantages and disadvantages of each? (12)
  5. If WBC were to issue some 25 year bonds with a coupon of 3.5% paid semi-annually, what kind of price/yield would they be offered at? Use the schedule on the next page which describes current bond prices and yields for Molson Coors Brewing Company as a reference point. Explain how you picked your price and yield?What credit rating do the Molson Coors bonds have and what do you think WBC’s bonds would be rated at and why? What kind of risks are there for investors? (10)

 

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