Financial Analysis of Loblaw Companies Limited

Table of Contents

I.        Introduction        1

II.        WACC Analysis        1

i.        Market Value of Common Stock (S):        2

ii.        Market Value of Debt (B):        2

iii.        Market Value of Preferred Stock (P)        2

iv.        Market Value of Enterprise (V)        2

v.        Cost of equity (KS)        3

vi.        Cost of debt (Kb)        4

vii.        Cost of preferred stock (Kp)        5

viii.        WACC        5

III.        Capital Structure Analysis        5

IV.        Conclusion:        6

V.        References        8

Appendix  - Supplementary Information        9

1. Introduction

We have compiled the enclosed report for Loblaw based on the company’s historical financial data.

Loblaw Companies Limited was incorporated in 1965 as holding company for Loblaw Groceterias and is currently listed on Toronto Stock Exchange. Loblaw has its major operations in providing grocery, pharmacy products, apparels, footwear, wireless mobile products and banking services across Canada and The United States. It operates through a chain of retail stores and is considered the largest food retailer with over 1000 corporate and franchise supermarkets.