Assignments to complete this module Reading Chapter 13 Return, Risk, and the Security Market Line Chapter 14 Cost of Capital Submit Professional Assignment 2 by Sunday at 11 59 p m Professional Assignment 2 Please see the rubrics for grading criteria CLO 1 Recall accounting and finance vocabulary, terminology, charts, tables, equations, and calculations CLO 2 Analyze and evaluate a Balance Sheet, Income Statement, and Statement of Cash Flows CLO 3 Calculate and evaluate Present Value, Future Value, Net Present Value, Internal Rate of Return (IRR), Profitability Index (PI), and Coefficient of Variance (CV) as applied in capital investment projects CLO 4 Evaluate short term versus long term investment decisions, increasing shareholder values CLO 5 Compile technical and strategic investment principles CLO 6 Determine and evaluate the performance of a well diversified portfolio CLO 7 Distinguish and apply the principles of T accounts, debits, and credits The PA 2 includes two parts Part 1 about evaluating beta and WACC, and Part 2 is about data acquisition in preparation of the CLA 2 You need to complete both parts in your 2 to 4 page, APA formatted report to demonstrate your comprehensive evaluation of the company's opportunity cost as well as your skills in retrieving and organizing historical data on securities for the purpose of portfolio formation Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation Provide these statements in proper format and include a screenshot of the data Retrieve the data on the companys historical data and calculate annual rate of return by using adjusted closing prices for the past 20 years Using the data on the company's stock rate of return and the indexs rate of return, estimate the beta of the corporation Compare this value with the value stated by the source Retrieve the risk free rate of return as the annual interest rate of US treasuries Based on these values, estimate the expected annual rate of return of the corporations security Compare your estimate with the expected rate of return as evaluated based on your data in part b Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt) Also, find the tax rate and capitalization ratio (proportions among equity and debt) Using these values that you have found, estimate the annual weighted cost of capital (WACC) of the corporation This part of the assignment is in preparation for CLA 2 Choose five (5) major securities from different industries, one of which can be the one you chose in part 1 of the question Retrieve the data on the companies historical data and calculate annual rate of return for the past 20 years for each security

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Assignments to complete this module: Reading: Chapter 13: Return, Risk, and the Security Market Line Chapter 14: Cost of Capital Submit Professional Assignment #2 by

Assignments to complete this module:

Reading:

Chapter 13: Return, Risk, and the Security Market Line
Chapter 14: Cost of Capital
Submit Professional Assignment #2 by Sunday at 11:59 p.m

Professional Assignment #2 - Please see the rubrics for grading criteria.

CLO #1 - Recall accounting and finance vocabulary, terminology, charts, tables, equations, and calculations.

CLO #2 - Analyze and evaluate a Balance Sheet, Income Statement, and Statement of Cash Flows.

CLO #3 - Calculate and evaluate Present Value, Future Value, Net Present Value, Internal Rate of Return (IRR), Profitability Index (PI), and Coefficient of Variance (CV) as applied in capital investment projects.

CLO #4 - Evaluate short term versus long term investment decisions, increasing shareholder values.

CLO #5 - Compile technical and strategic investment principles.

CLO #6 - Determine and evaluate the performance of a well-diversified portfolio.

CLO #7 - Distinguish and apply the principles of T-accounts, debits, and credits.

The PA 2 includes two parts: Part 1 about evaluating beta and WACC, and Part 2 is about data acquisition in preparation of the CLA 2. You need to complete both parts in your 2 to 4 page, APA-formatted report to demonstrate your comprehensive evaluation of the company's opportunity cost as well as your skills in retrieving and organizing historical data on securities for the purpose of portfolio formation.

Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation.
1. Provide these statements in proper format and include a screenshot of the data.
2. Retrieve the data on the companys historical data and calculate annual rate of return by using adjusted closing prices for the past 20 years.
3. Using the data on the company's stock rate of return and the indexs rate of return, estimate the beta of the corporation. Compare this value with the value stated by the source.
4. Retrieve the risk-free rate of return as the annual interest rate of US treasuries. Based on these values, estimate the expected annual rate of return of the corporations security. Compare your estimate with the expected rate of return as evaluated based on your data in part b.
5. Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt).
  1. Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found, estimate the annual weighted cost of capital (WACC) of the corporation.

This part of the assignment is in preparation for CLA 2. Choose five (5) major securities from different industries, one of which can be the one you chose in part 1 of the question.
1. Retrieve the data on the companies historical data and calculate annual rate of return for the past 20 years for each security.