Premium Essay

Accounting and Managerial Finance

In: Business and Management

Submitted By RRBG
Words 4435
Pages 18
Executive Summary

Henkel AG is a worldwide company, which headquarter is located in Düsseldorf, Germany. Since 1876, holds a well-known leading market positions in both industrial and consumer businesses. It employs around 47,000 people, from at least 6 different areas worldwide. The company has brands and technologies which focused in three globally operating areas: Laundry & Home Care, Beauty Care and Adhesive technologies (Henkel AG & Co. KGaA, 2012).

From 2012 their sales values has recorded 3.410 million euros, gross profit of 1.073 million euros and a net income which had a major increase from 32 million euros made in 2011 to 591 million euros en 2012, following (Henkel AG & Co. KGaA, 2012).

Fortunately, with a constant increase that the company have been having from its current assets, potential investor might be tempted to follow from close the progress of Henkel.

This essay is also gives Henkel AG a much closer look of some of the financial values of the company in order to explain its progress to help having a better perspective of how are the performance management being a support for its evolution to incentive even more current and potential investors.

Table of content
Introduction 4
Cost of Equity 5
Market Beta 7
Cost of Debt 14
Weighted Average Cost of Capital (WACC) 17
Conclusion 18
References 19
Appendix 21

Introduction

Due to the current economic status quo of business markets worldwide, many companies have lost their “feet”, in other worlds, the so assured stability they thought having, consequently, suffered a significantly decrease of demand and also a certain pressure from their shareholders regarding to the measures to be taken from the company to restore its reliability towards the market. However, there are financial and accounting procedures taken by current and...

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