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Your final assignment consists of 15 open ended questions. Verizon (VZ) is the company you will analyze and you will need to use their 2020

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Your final assignment consists of 15 open ended questions. Verizon (VZ) is the company you will analyze and you will need to use their 2020 quarterly financial statements to answer many of the questions. Each question is worth 5-7 points for a total of 100. You must show ALL work and formulas that you use. You have 75 minutes to complete the assignment. For questions 1-5, please use the following information: I 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 BASED ON THE ABOVE INFORMATION CALCULATE THE FOLLOWING: 1. Cost of equity (7 points) I 2. After tax cost of debt (7 points) 3. Weighted average cost of capital (WACC) (7 points) 4. Net present value of the investment (NPV) (7 points) I 5. Internal rate of return of the investment (IRR) (7 points) The formula for IRR (cash flows)/(1+r)^I - Initial Investment For questions 6-13, use the appropriate information given for questions 1-5. Also refer to the VZ financial statements and calculate the following ratios: 6. Debt equity ratio (6 points) I 7. Times interest earned (6 points) 8. Inventory turnover ratio (6 points) 9. Return on equity (ROE) (6 points) I 10. Price Earnings Ratio (6 points) 11. VZ currently has a 10-year bond priced at $983.21 with a 6.35% coupon paid semi-annually. VZ wants to issue a new 10-year bond at par bond with a face value of $1,000. Calculate the coupon of the new bond. (points)

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