Bintulu Port Holdings Berhad is an investment holding company. The subsidiaries are engaged in provision of port services at Bintulu Port, Sarawak and provision of bulking installation facilities for palm oil, edible oils, vegetable oils, fats and its by-products. Bintulu Port operates in two segments: Port operations and Bulking services. The port operations segment is engaged in the provision of port services, which includes handling of cargo for liquefied natural gas, petroleum products, liquefied petroleum gas, general cargo, container, dry bulk cargo and other ancillary services. The bulking services segment is engaged in the provision of bulking installation facilities for palm oil, edible oils, vegetable oils, fats and its by-products.
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Bintulu Port Holdings Berhad is an investment holding company. The subsidiaries are engaged in provision of port services at Bintulu Port, Sarawak and provision of bulking installation facilities for palm oil, edible oils, vegetable oils, fats and its by-products. In this report, we are required to calculate the Weighted Average Cost of Capital (WACC) of Bintulu Port Holdings Berhad. Weighted average cost of capital (WACC) is the average rate of return a company expects to compensate all its different investors. The weights are the fraction of each financing source in the company's target capital structure. Based on the company we have chosen, Bintulu Port Holdings Berhad, the cost of the equity of the company is 1.04%, while the cost of debt is 4.62%. Capital structure weights for equity and debt are 0.6867 and 0.3133 respectively. Hence, we can see that the Weighted Average Cost of Capital (WACC) of Bintulu Port Holdings Berhad in year 2016 is 1.799%. WACC is the overall required return for a firm. Therefore, company will often use WACC internally to make decisions, such as determining the economic feasibility of mergers and other expansionary opportunities. WACC is important for Bintulu Port Holdings Berhad to know its weighted average cost of capital as a way to gauge the expense of funding future projects. A company’s WACC will increase if the rate or return on equity and beta coefficient increase. Higher WACC mean that higher risk, thus higher return from the
Bintulu Port Holdings Berhad is an investment holding company. The subsidiaries are engaged in provision of port services at Bintulu Port, Sarawak and provision of bulking installation facilities for palm oil, edible oils, vegetable oils, fats and its by-products. In this report, we are required to calculate the Weighted Average Cost of Capital (WACC) of Bintulu Port Holdings Berhad. Weighted average cost of capital (WACC) is the average rate of return a company expects to compensate all its different investors. The weights are the fraction of each financing source in the company's target capital structure. Based on the company we have chosen, Bintulu Port Holdings Berhad, the cost of the equity of the company is 1.04%, while the cost of debt is 4.62%. Capital structure weights for equity and debt are 0.6867 and 0.3133 respectively. Hence, we can see that the Weighted Average Cost of Capital (WACC) of Bintulu Port Holdings Berhad in year 2016 is 1.799%. WACC is the overall required return for a firm. Therefore, company will often use WACC internally to make decisions, such as determining the economic feasibility of mergers and other expansionary opportunities. WACC is important for Bintulu Port Holdings Berhad to know its weighted average cost of capital as a way to gauge the expense of funding future projects. A company’s WACC will increase if the rate or return on equity and beta coefficient increase. Higher WACC mean that higher risk, thus higher return from the