Question
I need a help with my paper these are the instructions for the paper below. Instructions: Select a major industrial or commercial company based in
I need a help with my paper these are the instructions for the paper below.
Instructions:
- Select a major industrial or commercial company based in the United States that is listed on one of the major stock exchanges in the United States. Each student should select a different company.
- Avoid selecting an insurance company or a bank, because the financial ratios for these financial businesses are different.
- The last page of your paper should be the bibliography of sources used.
- Usually, the best place to start your paper is with the latest 10-K Report of your selected company.
- Write a 78-page, double-spaced paper answering the questions below supported by calculations, operating, and financial information.
Questions:
What is the name of the company? What is its industry sector?
What are the operating risks of the company?
What is the financial risk of the company (the debt to total capitalization ratio)?
Does the company have any preferred stock?
What is the capital structure of the company: short-term portion of long-term debt, long-term debt, preferred stock (if any), and market value of common stock issued and outstanding?
What is the companys current actual beta (or equity beta)?
What is the companys current marginal tax rate?
What is the cost of debt before and after taxes?
What is the cost of preferred stock (if any)?
What is the cost of common stock equity? (Use the Capital Asset Pricing Model.)
What is the weighted average cost of capital of the company?
How has the companys stock been performing in the last 5 years?
What is the annual cash dividend yield of the common stock?
How would you assess the overall risk structure of the company in terms of its operating risks and financial risk (debt-to-capitalization ratio)?
Would you invest in this company? Why or why not?
The last page of your paper should be a bibliography of the sources that you used to prepare this paper.
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