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Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation. a. Provide
Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation.
a. Provide these statements in proper format and include a screenshot of the data.
b. Retrieve the data on the companys historical data and calculate its annual rate of
return by using adjusted closing prices for the past 20 years.
c. Using the data on the company's stock rate of return and the indexs rate of return,
estimate the beta of the corporation. Compare this value with the value stated by
the source.
d. Retrieve the risk-free rate of return as the annual interest rate of US treasuries.
Based on these values, estimate the expected annual rate of return of the corporations security. Compare your estimate with the expected rate of return as evaluated based on your data in Part 2.
e. Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt).
i. Additionally, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values, estimate the annual weighted cost of capital (WACC) of the corporation.
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