Question

Case Narrative: The financial data for Kraft Heinz Company (KHC) is provided below. This information is to be used to answer the mini-case questions.

Equity Information: Kraft Heinz Company (Source Yahoo! Finance)

43.19 -0.42 (-0.97%)
At close: April 28 4:00 PM EDT

Previous Close 43.61
Open 43.41
Bid 43.67 x 1000
Ask 43.68 x 1400
Day’s Range 43.36 – 43.70
52 Week Range 32.78 – 44.95


2021 Dividend Data

Nov 15, 2021 .40 dividend
Aug 16, 2021 .40 dividend
May 17, 2021 .40 dividend
Feb 08, 2021 .40 dividend

Share Statistics:

Ave Volume 6.96 M

Shares Outstanding: 1.225 B


Additional Information for Kraft Heinz Company:

• Annual dividend for the COMMON STOCK is expected to grow at a rate of 3.5%
• Kraft’s PREFERRED STOCK currently sells at a price of $50 per share. It pays a dividend of $2.00 (which is NOT expected to grow)


Bond Information: Kraft Heinz Company


Kraft Heinz Foods 2032

V 112.37 USD 1.26 (1.12%)

Coupon 6.75%

Demonization 1000
Additional Information for Kraft Heinz Bond Issue:
• The bond has 12 years remaining until maturity
What is the market capitalization for the Kraft Heinz Company?

Answer 1

The market capitalization for the Kraft Heinz Company is $53.31 billion.

Step-by-step explanation:

The market capitalization for the Kraft Heinz Company can be determined by multiplying the number of outstanding shares by the stock price. According to the given information, the number of outstanding shares is 1.225 billion. To find the stock price, we can refer to the previous close which is provided as $43.61. Therefore, the market capitalization for Kraft Heinz Company is calculated as follows:

Market Capitalization = Number of Outstanding Shares x Stock Price

Market Capitalization = 1.225 billion x $43.61 = $53.31 billion