Question
1. Analyze Berkshire Instruments' capital structure, focusing on the current balance sheet and the provided historical cost data for debt and preferred stock. 2. Calculate
1. Analyze Berkshire Instruments' capital structure, focusing on the current balance sheet and the provided historical cost data for debt and preferred stock. 2. Calculate the weighted average cost of capital (WACC) based on using retained earnings in the capital structure, considering the historical costs of components (60% of financing). 3. Recompute the WACC based on using new common shares in the capital structure (keeping the weights the same) and determine the level of new financing at which this change occurs. 4. Use the Capital Asset Pricing Model (CAPM) to calculate the cost (required return) on common shares (equity). Assume Rf = 6%, = 1.25, and Rm = 13%. Compare this value to the cost of common equity calculated in question 2. 5. Generate your own PowerPoint presentation on the assigned topic. 6. Record your presentation using Zoom and provide the link for sharing. Please ensure the duration of your presentation falls within the range of 4 to 5 minutes (50% of the grade). 7. Attach your PowerPoint file (10% of the grade).
8. Attach your Word file showing your calculation and clear answer. (40%)
1. Review Berkshire Instruments' current capital structure, focusing on the balance sheet and the provided historical cost data for debt and preferred stock.
2. Calculate the weighted average cost of capital (WACC) based on using retained earnings, making use of the historical cost data. Consider that common equity represents 60% of financing.
3. Recompute the WACC based on using new common shares in the capital structure while keeping the weights the same. Determine the level of new financing at which this change occurs.
4. Use the Capital Asset Pricing Model (CAPM) to compute the cost (required return) on common shares (equity). Apply the given parameters (Rf = 6%, = 1.25, Rm = 13%) and compare it to the cost of common equity calculated in question 2.
5. Create your own PowerPoint presentation on the assigned topic, following best practices for content, design, and delivery.
6. Record your presentation using Zoom by following the tutorial provided in the course materials.
7. Keep in mind that this assignment also assesses your ability to prepare for an online interview and express your opinions clearly and confidently.
8. Record your presentation using Zoom and provide the link for sharing, without attaching the file directly to this platform. For guidance on how to record your video using Zoom and share the link, refer to the
Grading Criteria
Criteria | Exemplary | Proficient | Emerging | Not Included |
WACC Calculation Based on Retained Earnings (Word) | Calculation is accurate and well-supported, demonstrating a deep understanding of the concept. | Calculation is mostly accurate with minor errors. The student shows a good understanding of the concept. | Calculation has errors, but the student attempts to apply the concept. | Calculation is incorrect or missing. |
WACC Recalculation Based on New Common Shares (Word) | Recalculation is accurate and logically explained, with the correct determination of the new financing level. | Recalculation is accurate but may lack some clarity in the explanation or the new financing level determination. | Recalculation has errors, and the explanation lacks clarity. | Recalculation is incorrect or missing. |
CAPM Application (Word) | CAPM is correctly applied, with a clear understanding of the parameters and a thorough comparison to the cost of common equity calculated in question 2. | CAPM is mostly correctly applied, with minor errors or a less detailed comparison. | CAPM application has errors, and the comparison lacks detail. | CAPM application is incorrect or missing. |
Presentation Content (PowerPoint) | Presentation is clear, informative, and highly engaging. | Presentation is clear, informative. | Presentation is lacks clarity and engagement. | No presentation submitted. |
Presentation Design (PowerPoint) | Presentation is visually appealing, well-organized, and follows design best practices. | Presentation is visually appealing and organized. | Presentation lacks visual appeal and organization. | No presentation submitted. |
Presentation Delivery (video) | Presentation is delivered confidently and effectively, engaging the audience. | Presentation is delivered with some confidence and effectiveness. | Presentation has some delivery issues. | No presentation submitted. |
Zoom Recording Quality (video) | Recording is high- quality with clear audio and visuals. | Recording meets basic quality standards. | Recording shows notable quality issues. | No recording submitted. |
i want complete presentation i just want i can copy paste your infromation in word and i want that how can i expain this presentation
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