As a part of daily routine of equity research, we constantly select a public firm and

evaluate its financial health as well as the cost of capital. This project requires you to choose a publicly traded firm that you are interested in$.$ Using the firm$$s financial statements $(10$K Annual Report$)$ filed with the SEC and your own research, complete the following:

FIRM: TESLA $($TSLA$)$

$1.$ In an excel spreadsheet, calculate historical financial ratios from the financial statements of the firm for the past three years. You should compute a variety of ratios that assess the financial health of different aspects of the firm $($i$.$e$.,$ short$-$term solvency, long$-$term solvency, asset management, profitability, and market value$).$

$2.$ Choose two firms you believe compete with your firm. In an excel sheet, compute and compare the financial ratios of your firm with the ratios of the competitor firms.

FIRMS: General Motors $($GM$)$ and Ford Motors $($F$)$

$3.$ Write a $1$ page recap on the of the firms business, competition, and trends. Include your opinion of the overall financial health of the firm? Be sure to address the financial health of different aspects of the firm. Recent news and announcements about the firm may be incorporated into your analysis. You need to submit a written report in Word together with Excel spreadsheet in which you perform the quantitative analysis.

$4.$ What is the cost of equity for the firm? Preferably, using both CAPM and DDM to

estimate the cost of equity. Show work in Excel

$5.$ What is the cost of debt for the firm? Show work in Excel

$6.$ What is the cost of capital for the firm? Show work in Excel

$($A few notes: All of your calculations should be computed in Excel and should be well organized and labeled. You can find financial statements by searching for a company$$s annual report, or you may also be able to locate the financial statements on websites such as Yahoo finance or Bloomberg. Be sure to cite all data sources