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Please answer the following questions for the company given is CGI:Information technology consulting . A- Calculate the average monthly stock market return on the company

Please answer the following questions for the company given is CGI:Information technology consulting.

A- Calculate the average monthly stock market return on the company over the past 5 years.

B- Determine the risk of the firm by measuring its beta.

C- Make a list of all the risks that your company is exposed to and classify those into market-risk, firm-risk, industry-risk, etc...

Please note that you have to use Yahoo Finance and your own research to find the information. Use financial statements if necessary.

Here is a suggested outline you can follow with your answer:

Risk and Return Analysis:

A- Risk Relative to the Market

Average annual return

Standard deviation

B- Cost of Equity

Regression Method Beta

Bottom Up Beta

C-Cost of Debt

After-Tax Cost of Debt = Pre-tax cost of debt * (1-Tc)

Pre-Tax Cost of Debt = Risk free rate + Default spread

Interest Coverage Ratio=

Earnings Before Interest and Taxes (EBIT)=

D-Weighted Average Cost of Capital

% of Equity = Book Value of Equity / (Book Value of Equity + Book Value of Debt)

% of Debt = Book Value of Debt / (Book Value of Equity + Book Value of Debt)

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