Calculate the following based on the given income statement and balance sheet,

1. Retrieve the data on the companys historical data and calculate its annual rate of return by using adjusted closing prices for the past 20 years.
2. 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.
3. 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 2.
4. Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt).
   1. Additionally, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values, estimate the corporation's annual weighted cost of capital (WACC).

part Two

1. 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 the annual rate of return for the past 20 years for each security

Income Statement All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM > Total Revenue 21,547,000 Cost of Revenue 17,435,000 Gross Profit 4,112,000 > Operating Expense 2,003,000 Operating Income 2,109,000 > Net Non Operating Interest Inc... -31,000 > Other Income Expense 82,000 Pretax Income 2,160,000 Tax Provision 465,000 Earnings from Equity Interest Net ... -13,000 > Net Income Common Stockhold... 1,663,000 Diluted NI Available to Com Stock... 1,663,000 Basic EPS Diluted EPS Basic Average Shares 12/31/2021 12/31/2020 12/31/2019 21,985,000 19,456,000 20,419,000 17,576,000 15,606,000 16,886,000 4,409,000 3,850,000 3,533,000 2,128,000 1,939,000 2,211,000 2,281,000 1,911,000 1,322,000 -16,000 -168,000 -19,000 67,000 -288,000 249,000 2,332,000 1,455,000 1,552,000 518,000 384,000 354,000 -8,000 1,783,000 1,081,000 1,184,000 1,783,000 1,081,000 1,184,000 28.73 17.24 18.60 28.36 17.07 18.45 62,100 62,700 63,700 Basic Average Shares Diluted Average Shares Total Operating Income as Reported Total Expenses Net Income from Continuing & Dis... Normalized Income Interest Income Interest Expense Net Interest Income EBIT EBITDA Reconciled Cost of Revenue Reconciled Depreciation Net Income from Continuing Oper... Total Unusual Items Excluding Goo... Total Unusual Items Normalized EBITDA Tax Rate for Calcs Tax Effect of Unusual Items 62,100 62,900 2,191,000 2,348,000 19,438,000 19,704,000 1,663,000 1,783,000 1,598,653 1,731,745 140,000 159,000 171,000 175,000 -31,000 -16,000 2,331,000 2,507,000 2,796,000 17,009,000 17,129,000 465,000 494,000 1,663,000 1,783,000 82,000 67,000 82,000 67,000 2,934,000 2,714,000 0 0 17,653 15,745 62,700 63,300 1,623,000 17,545,000 1,081,000 1,292,992 21,000 189,000 -168,000 1,644,000 15,100,000 568,000 1,081,000 -288,000 -288,000 2,500,000 0 -76,008 63,700 64,200 1,571,000 19,097,000 1,184,000 991,795 168,000 187,000 -19,000 1,739,000 16,368,000 587,000 1,184,000 249,000 249,000 2,077,000 0 56,795 Balance Sheet All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 12/31/2021 12/31/2020 12/31/2019 > Total Assets 20,285,000 20,350,000 18,881,000 > Total Liabilities Net Minority Int... 15,272,000 15,641,000 14,763,000 > Total Equity Gross Minority Inte... 5,013,000 4,709,000 4,118,000 Total Capitalization 9,775,000 8,858,000 7,335,000 Common Stock Equity 4,846,000 3,799,000 3,195,000 Capital Lease Obligations 794,000 838,000 778,000 Net Tangible Assets 380,000 -891,000 -1,470,000 Working Capital 1,185,000 685,000 -971,000 Invested Capital 10,083,000 9,168,000 8,188,000 Tangible Book Value 380,000 -891,000 -1,470,000 Total Debt 6,031,000 6,207,000 5,771,000 Net Debt 2,193,000 2,445,000 3,041,000 Share Issued 114,000 112,547 112,000 Ordinary Shares Number 59,000 62,547 63,000 Treasury Shares Number 55,000 50,000 49,000 Cash Flow All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM > Operating Cash Flow 1,666,000 > Investing Cash Flow -612,000 > Financing Cash Flow -1.736,000 > End Cash Position 2,082,000 Income Tax Paid Supplemental Data Interest Paid Supplemental Data Capital Expenditure -539,000 Issuance of Capital Stock 47,000 Issuance of Debt Repayment of Debt Repurchase of Capital Stock -1,424,000 Free Cash Flow 1,127,000 12/31/2021 12/31/2020 12/31/2019 2,176,000 1,500,000 1,230,000 -660,000 -237,000 636,000 -1,339,000 -253,000 -1,424,000 3,044,000 2,934,000 1,952,000 388,000 229,000 469,000 169,000 193,000 194,000 -525,000 -410,000 -532,000 76,000 44,000 8,000 300,000 1,033,000 700,000 -300,000 -569,000 -949,000 -1,041,000 -121,000 -148,000 1,651,000 1,090,000 698,000 Income Statement All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM > Total Revenue 21,547,000 Cost of Revenue 17,435,000 Gross Profit 4,112,000 > Operating Expense 2,003,000 Operating Income 2,109,000 > Net Non Operating Interest Inc... -31,000 > Other Income Expense 82,000 Pretax Income 2,160,000 Tax Provision 465,000 Earnings from Equity Interest Net ... -13,000 > Net Income Common Stockhold... 1,663,000 Diluted NI Available to Com Stock... 1,663,000 Basic EPS Diluted EPS Basic Average Shares 12/31/2021 12/31/2020 12/31/2019 21,985,000 19,456,000 20,419,000 17,576,000 15,606,000 16,886,000 4,409,000 3,850,000 3,533,000 2,128,000 1,939,000 2,211,000 2,281,000 1,911,000 1,322,000 -16,000 -168,000 -19,000 67,000 -288,000 249,000 2,332,000 1,455,000 1,552,000 518,000 384,000 354,000 -8,000 1,783,000 1,081,000 1,184,000 1,783,000 1,081,000 1,184,000 28.73 17.24 18.60 28.36 17.07 18.45 62,100 62,700 63,700 Basic Average Shares Diluted Average Shares Total Operating Income as Reported Total Expenses Net Income from Continuing & Dis... Normalized Income Interest Income Interest Expense Net Interest Income EBIT EBITDA Reconciled Cost of Revenue Reconciled Depreciation Net Income from Continuing Oper... Total Unusual Items Excluding Goo... Total Unusual Items Normalized EBITDA Tax Rate for Calcs Tax Effect of Unusual Items 62,100 62,900 2,191,000 2,348,000 19,438,000 19,704,000 1,663,000 1,783,000 1,598,653 1,731,745 140,000 159,000 171,000 175,000 -31,000 -16,000 2,331,000 2,507,000 2,796,000 17,009,000 17,129,000 465,000 494,000 1,663,000 1,783,000 82,000 67,000 82,000 67,000 2,934,000 2,714,000 0 0 17,653 15,745 62,700 63,300 1,623,000 17,545,000 1,081,000 1,292,992 21,000 189,000 -168,000 1,644,000 15,100,000 568,000 1,081,000 -288,000 -288,000 2,500,000 0 -76,008 63,700 64,200 1,571,000 19,097,000 1,184,000 991,795 168,000 187,000 -19,000 1,739,000 16,368,000 587,000 1,184,000 249,000 249,000 2,077,000 0 56,795 Balance Sheet All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown 12/31/2021 12/31/2020 12/31/2019 > Total Assets 20,285,000 20,350,000 18,881,000 > Total Liabilities Net Minority Int... 15,272,000 15,641,000 14,763,000 > Total Equity Gross Minority Inte... 5,013,000 4,709,000 4,118,000 Total Capitalization 9,775,000 8,858,000 7,335,000 Common Stock Equity 4,846,000 3,799,000 3,195,000 Capital Lease Obligations 794,000 838,000 778,000 Net Tangible Assets 380,000 -891,000 -1,470,000 Working Capital 1,185,000 685,000 -971,000 Invested Capital 10,083,000 9,168,000 8,188,000 Tangible Book Value 380,000 -891,000 -1,470,000 Total Debt 6,031,000 6,207,000 5,771,000 Net Debt 2,193,000 2,445,000 3,041,000 Share Issued 114,000 112,547 112,000 Ordinary Shares Number 59,000 62,547 63,000 Treasury Shares Number 55,000 50,000 49,000 Cash Flow All numbers in thousands Get access to 40+ years of historical data with Yahoo Finance Plus Essential. Learn more Breakdown TTM > Operating Cash Flow 1,666,000 > Investing Cash Flow -612,000 > Financing Cash Flow -1.736,000 > End Cash Position 2,082,000 Income Tax Paid Supplemental Data Interest Paid Supplemental Data Capital Expenditure -539,000 Issuance of Capital Stock 47,000 Issuance of Debt Repayment of Debt Repurchase of Capital Stock -1,424,000 Free Cash Flow 1,127,000 12/31/2021 12/31/2020 12/31/2019 2,176,000 1,500,000 1,230,000 -660,000 -237,000 636,000 -1,339,000 -253,000 -1,424,000 3,044,000 2,934,000 1,952,000 388,000 229,000 469,000 169,000 193,000 194,000 -525,000 -410,000 -532,000 76,000 44,000 8,000 300,000 1,033,000 700,000 -300,000 -569,000 -949,000 -1,041,000 -121,000 -148,000 1,651,000 1,090,000 698,000