Consider two companies:
Look at the profiles (financial statements for 2016) of each on yahoo finance and discuss the followings (you need to calculate these values yourself and show details of your calculations):
- How many outstanding shares the company has?
- What is the market value of the company?
- What is the book value of the company?
- What is the beta for the company?
- How do you find the risk free rate? (consider the market risk premium to be 8%)
- Using CAPM calculate the expected return on the equity for the company.
(To get the required rate of return on debt, divide the interest expense by total debt)
(To get the total debt, add the short term debt to long term debt)
- What is the Weighted average cost of capital (WACC) for the company?
- What is the leverage (total debt/equity ratio) for the company?
2. Need CLA2 presenation based on the info mentioned in the paper on the above questions Presentation should be prepared and include
– Executive Summary
–Examples with pictures/ daigrams
( more pictures will be good)
– Slides should be on the finding from the above companies based on the above company
The presentation will consist of your major findings, analysis, and recommendations in a concise presentation of 18 slides (minimum). You should use content from your CLA2 report as material for your PowerPoint presentation.
In addition, you should include learning outcomes from all your major assignments. An agenda, executive summary, and references slides should also be included.