Beta and Capital Budgeting

You can take help of yahoo finance

Part 1: Beta

1.Search for the beta of your company (Target Corporation)

2.In addition, find the beta of 3 different companies within the same industry as your company.

3.Explain what beta means and how it can be used for managerialand/or investment decision.

4.Whydo you think the beta of your company and those of the 3 companies you found are different from eachother? Provide as much information as you can and be specific.

Part 2: Capital Budgeting

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

1) Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

2) Is the ultimate goal of most companies--maximizing the wealth of the owners for whom the firm is being operated--ethical? Why or why not?

3) Why might ethical companies benefit from a lower cost of capital than less ethical companies?

Thank you for your time and help.