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Question: 1. Hello, would you be able to answer the questions below in regards to the company called Wabco?

2. http://financials.morningstar.com/ratios/r.html?t=WBC

3. Choose a company whose financials you can acquire online or in print.

4. Spread 3 years of financials for the company using Excel. Do actual fiscal year-ends, not estimated.

5. In all calculations, use real numbers from the company's financials, not reported ratios provided by online and other sources. Do all calculations for the most recent 3 years available.

6. Collect stock data-current stock price, shares outstanding.

7. Calculate financial ratios and compare to industry average. Do the same ratios required for Case 1. What can you conclude from the ratios?

8. Any warning signs? Anything that stands out?

9. Perform common size analysis. What does this analysis tell you about your company? Are any trends apparent?

10. Use the extended DuPont equation to provide a summary and overview of your firm's financial condition

11. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method.

12. Estimate the company's WACC. Be sure your selected firm has long term debt.

13. What is your summary of this company's financial condition?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92262298

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