Weighted Average Cost of Capital (WACC) - Essay Example

nologies Incorporated), principally involved in the integration of radiology images information into healthcare enterprise networks improving radiology workflow efficiencies, reduces operating costs and improves medical decision making processes. Thomson One (2004) will be utilized on this financial analysis process for it provides a complete presentation of various companies’ profile, financial statements, and past and projected operations that are very useful to investors, creditors, and other business entities as well for financial analysis purposes prior to business acquisition, purchase, merger, or investment undertakings.

Thomson One exhibited quantitative information of the 3-year business operations of Siemens Medical Solutions Diagnostics Limited. Presented were financial statements as of 09/30/2007, 12/31/2006, and 12/31/2005. The most recent financial statement recorded was on 09/30/2007 and the balance sheet have these values (presented in millions): Total Assets (all current and 0 long term) = 784.41; Total Liabilities (all current and 0 long term) = 306.43; Total Shareholder’s Equity (all common equity and 0 preferred equity) = 477.99. For the rate of change year over year starting from 2006 (2005 as the base year), it can be observed that all components of the balance sheet had marginally increased: Total Assets = 83.

03%; Total Liabilities = 303.16%; and Total Shareholder’s Equity = 19.83%. By 2007, Total Assets unfavorably dropped by 11.56%; Total Liabilities was decreased by 29.68%; and Total Shareholder’s Equity had increased by 5.95%. For the Income Statement of the company, the 3-year business operations had been profitable with its peak year on 2006 generating a marginal net profit of 262.685 (million), equivalent to 337.99% increase from 59.975 profit during 2005. On 2007, net income had decreased to 49.

302, equivalent to 81.23% decrease in profit from the previous year’s business operation. Thomson One presents the 5-year