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risk free rate: 1.75% expected rate of return for the market: 9.5% Beta of VZ: 0.88 VZ total debt, interest and shares issued can be
- risk free rate: 1.75%
- expected rate of return for the market: 9.5%
- Beta of VZ: 0.88
- VZ total debt, interest and shares issued can be found in VZ financial statements
- assume market value of all debt is 100% of face(par) value.
- tax rate is 20%
- VZ stock price: $55
- initial investment: 4,500,000
- year 1 cash flow: 1,100,000
- year 2 cash flow: 1,200,000
- year 3 cash flow: 1,350,000
- year 4 cash flow: 1,550,000
- year 5 cash flow: 1,750,000
6. Debt equity ratio
7. Times interest earned
8. Inventory turnover ratio
9. Return on equity (ROE)
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