4. Identification and Structure of the Company’s most recent Capital investment.
The MNST had working capital of $ 546.5 million on December 31, 2012 compared to $ 916.6 million as of December 31, 2011, The decrease in working capital was primarily the result of the $737.1 million repurchase of the Company’s common stock during the year ended December 31, 2012. Principal uses of cash flows in 2012 were repurchases of MNST’s common stock, purchases of investments, purchases of inventory, development of MNST’s Monster Energy® brand internationally, acquisition of property and equipment and acquisition of trademarks. These principal uses of cash flows are expected to be and remain MNST’s principal recurring use of cash and working capital funds in the future
MNST believe that cash available from operations, including cash resource and the revolving line of credit, will be sufficient for working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development needs, purchases of shares of MNST’s common stock, as well as any purchases of capital assets, equipment and properties, through at least the next 12 months. Based on MNST’s current plans, at this time MNST estimate that capital expenditures are likely to be less than $50.0 million through December 31, 2013. However, future business opportunities may cause a change in this estimate.
5-5. Cost of Capital
There is no company’s bond data available, so I could not find Current cost (YTM) of company bonds information and how many years T-Notes YTM information. However, by calculating , we can get these data:
2012 2011 2010
Return on invested capital 41.89% 31.67% 29.99%
We can know the return of the investment is pretty high, and the information from the 10K report of MNST, we could know its cost of capital should not be high, so the MNST has the cheaper cost to fund new projects (MNST’s WACC equals to...