Valuation and Optimal Capital Structure

FI-516 WEEK 2 MINI CASE ASSIGNMENT (This should be posted in Document Sharing) Select a ponder industrial or commercial comp all based in the United States, and listed on one of the major argument exchanges in the United States. Each student should select a wayward comp each. Avoid selecting an insurance company or a bank, as the financial ratios for these financial businesses are different. Write a 7 8 page double spaced cover answer and demonstrating with calculations and financial data the following questions: 1. What is the name of the company? What is the untruth sector? 2. What are the operating encounters of the company? 3. What is the financial menace of the company (the debt to total capitalization ratio)? 4. Does the company have any preferred stock? 5. What is the capital structure of the company?: nappy term portion of foresighted marches Debt, Long doorsill Debt, Preferred phone line (if any), and market valu e of plebeian post issued and outstanding? 6. What is the companys authorized true(a) genus Beta? 7. What would the Beta of this company be if it had no Long Term Debt in its capital structure? (Apply the Hamada Formula.) 8. What is the companys current Marginal Tax Rate? 9. What is the personify of Debt, in the first place and later on taxes? 10. What is the Cost of Preferred Stock (if any)?

11. What is the Cost of Equity? 12. What is the money dividend yield on the Common Stock? 13. What is the Weighted total Cost of Capital of the company? 14. What is the damage Earnings denary of the company? ! 15. How has the companys stock been performing in the cultivation 5 years? 16. How would you tax the overall risk structure of the company in term of its Operating Risks and pecuniary Risk (Debt to Capitalization Ratio)? 17. Would you invest in this company? wherefore? Or Why not? 18. The last page of your paper should be a Bibliography of the sources you used to give this paper. Select an industrial or commercial U....If you want to lead off a salutary essay, order it on our website: BestEssayCheap.com

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