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Choose any three major U.S. publicly traded firms (choose from three different industries). Choosing U.S. based firms makes this easier because you may not find

Choose any three major U.S. publicly traded firms (choose from three different industries). Choosing U.S. based firms makes this easier because you may not find complete financial data for many foreign firms (even well-known firms). For each of the three firms do the following:

1. Find and report the current Enterprise Value, market capitalization, total cash, total debt, trailing (lagging) P/E ratio, EV/EBITDA ratio, total interest coverage ratio (if listed in VL in Capital Structure section on middle left of page), and Beta (from VL).

2. Using the Capital Asset Pricing Model or CAPM, ri = rF + i [rM rF], estimate the required return for the equity or common stock of the firm. Use the equity Beta that you obtain from ValueLine (not from Yahoo). Use 5.5% for the [rM-rF] market risk premium, and the current 10-year U.S. Treasury bond YTM for the rF riskless rate. Show your calculations!!!

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