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Imran Zulfiqar
Spring, 2017
WACC ANALYSIS OF ELI LILLY 2
Table of Contents
Page No.
1. Abstract
2. Introduction
3. Definition of WACC
4. Cost of Debt
5. Cost of Equity Using Dividend Growth Model
6. Cost of Equity Using CAPM Model
7. WACC of Eli Lilly
8. Conclusion
9. References
Abstract
A Fortune 500 Corporation, Eli Lilly has revenues of 21.22B $ making it the 141th
largest company in the United States. and the 10th largest corporation by global pharmaceutical
sales. The company is publicly traded on the New York Stock exchange and is a member of the
WACC ANALYSIS OF ELI LILLY 3
S&P 500 stock index. According to Forbes, Lilly ranked as the 243rd largest public company in
the world in 2016, with sales of US$20 billion and a market value of $86.43 billion. The
significance and convenience of weighted average cost of capital (WACC) as a financial tool for
both investors and organizations is all around acknowledged among the financial analysts.
Currently, WACC of Eli Lilly was calculated with the help of cost of Debt, cost of Equity using
average of two approaches: Dividend Growth Model and Capital Assets Pricing Model,