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Pick a company of your choosing from the stock market. Review the quarterly (10-Q) and annual (0-k) reports for the last year. Find the most

Pick a company of your choosing from the stock market. Review the quarterly (10-Q) and annual (0-k) reports for the last year. Find the most recent 10-Q or 10-K, and download the form. Look on the balance sheet to find the book value of debt and the book value of equity. Post what the value of debt and book value of equity would be for that company. Explain what this means to the business. Explain a scenario where you (as Chief Financial Officer) would work to invest to make a change in the business. Feel free to make any changes you feel are necessary.

2. From there, find the cost of equity for the company, go to finance.yahoo.com and enter the ticker symbols Follow the links to answer the following questions: What is the most recent stock price listed for your chosen company? What is the market value of equity or market capitalization? How many shares of stock does have outstanding? What is the most recent annual dividend? Can you use the dividend discount model in this case? What is the beta of --? Now go back to fiance.yahoo.com and find the current U.S. Treasury bond rates. Explain what this means for your company.


3. Based on what you know about finance, how would you finance the changes that you are going to make to the company? Would you issue stock or bonds? Would the change itself be worth it? Why or why not? What is the Weighted Average Cost of Capital for your company? Once you know all of this information, craft an email to your Board of Directors to help them understand the changes that you plan to make and your rationale. Be sure to include all numbers gathered to build a strong business case for borrowing money.

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Book Value of Debt and Equity Assuming youve reviewed XYZ Incs recent 10Q or 10K report lets say the book value of debt is 100 million and the book value of equity is 300 million The book value of deb... blur-text-image

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