Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Select a major industrial or commercial company based in the United States, and listed on one of the major stock exchanges in the United States. Each student should select a different company. Avoid selecting an insurance company or a bank, as the financial ratios for these financial businesses are different. prepare a 7 - 8 page double spaced paper answering and demonstrating with calculations and financial data the following problems:

1. What is the name of the company? What is the industry sector?

2. What are the operating risks of the company?

3. What is the financial risk of the company (the debt to total capitalization ratio)?

4. Does the company have any preferred stock?

5. What is the capital structure of the company?: Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding?

6. What is the company's current actual Beta?

7. What would the Beta of this company be if it had no Long Term Debt in its capital structure? (Apply the Hamada Formula.)

8. What is the company's current Marginal Tax Rate?

9. What is the Cost of Debt, before and after taxes?

10. What is the Cost of Preferred Stock (if any)?

11. What is the Cost of Equity?

12. What is the cash dividend yield on the Common Stock?

13. What is the Weighted Average Cost of Capital of the company?

14. What is the Price Earnings Multiple of the company?

15. How has the company's stock been performing in the last 5 years?

16. How would you assess the overall risk structure of the company in terms of its Operating Risks and Financial Risk (Debt to Capitalization Ratio)?

17. Would you invest in this company? Why? Or Why not?

18. The last page of your paper should be a Bibliography of the sources you used to prepare this paper.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940892

Have any Question? 


Related Questions in Basic Finance

Explain how characteristics of mncs can affect the cost of

Explain how characteristics of MNCs can affect the cost of capital ? From an investor's standpoint, have small companies, in general over the past, been more profitable than their larger brethren?

Consider now the open trench illustrated below where

Consider now the open trench illustrated below where wastewater containing a volatile contaminate dissolved in the water enters one end of the trench. As the wastewater flows down the trench, the aeration gas strips out ...

To analyze various retirement-planning options check out

To analyze various retirement-planning options, check out the financial calculator at Bloomberg (http://www.bloomberg.com). Determine the effect of waiting versus immediate planning for retirement. What is the effect of ...

1 do powerful studies minimize alpha or beta explain2 what

1. Do powerful studies minimize alpha or beta? Explain. 2. What information do researchers obtain from conducting a power analysis? 3. What would it mean if the effect size in an experiment was .25? .40? .OO?

In a latin square each treatment condition occurs first one

In a Latin square, each treatment condition occurs first one time, second one time, third one time, and so on. Ideally, every possible sequence of two treatments should also occur exactly one time. For example, if two tr ...

1 illustrate a common trade-off that occurs between the

1. Illustrate a common trade-off that occurs between the work areas of logistics. 2. Discuss and elaborate on the following statement: "The selection of a superior location network can create substantial competitive adva ...

The text discusses the trade-off between internal and

The text discusses the trade-off between internal and external validity, known as the experimenters dilemma. Speculate on things a researcher can do to increase internal and external validity simultaneously, thereby desi ...

1 why is notional principal often exchanged in a currency

1. Why is notional principal often exchanged in a currency swap but not in an interest rate or equity swap? Why would the parties to a currency swap choose not to exchange the notional principal? 2 .Explain how the follo ...

1 why should investors be concerned about market rents if

1. Why should investors be concerned about market rents if they are purchasing a property subject to leases? 2. What is meant by equity? 3. What are the similarities and differences between an overall rate and an equity ...

What is the difference between shareholder and stakeholder

What is the difference between shareholder and stakeholder value? What is social responsibility? How does it, if at all, contribute to shareholder and stakeholder value? Does it add value to the firm? If so, how and unde ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen