Find and report the current enterprise value-beta

Assignment Help Financial Management

Reference no: EM131457787

Choose any three major U.S. publicly traded firms (choose from three different industries). Choosing U.S. based firms makes this easier because you may not find complete financial data for many foreign firms (even well known firms). For each of the three firms do the following:

1. Find and report the current Enterprise Value, trailing (lagging) P/E ratio, market capitalization, Beta (from VL), Total Cash, Total Debt, and EV/EBITDA for the firms.

2. Using the CAPM model, R_i = R_F+ β_i [R_M – R_F], estimate the required return for the equity or common stock of the firm. Use the equity Beta that you obtain from ValueLine (not from Yahoo). Use 5.5% for the [Rm-Rf] market risk premium.

Reference no: EM131457787

Questions Cloud

Calculate expected return-standard deviation of portfolio : Calculate the expected return and standard deviation of a portfolio that is weighted 88% in the U.S. and 12% in Mexico.

Terms relating only to variances of individual securities : How many of these would be terms relating only to variances of the individual securities?

What is the expected return and standard deviation : What is the expected return and standard deviation of this investment portfolio?

Stock beta with respect to the market index portfolio : Estimate Ciena’s equity or stock beta with respect to the market index portfolio?

Find and report the current enterprise value-beta : Find and report the current Enterprise Value, trailing (lagging) P/E ratio, market capitalization, Beta (from VL), Total Cash, Total Debt,

Interest rates are currently very low compared to historic : Interest rates are currently very low compared to historic averages and there doesn't seem to be much pressure for them to move up in the near future.

What is the price per share of equity under plan : Silverton Co. is comparing two different capital structures. What is the price per share of equity under Plan I?

What is the yield to call of the bond : The call premium is one year of coupon payments. It is offered for sale at $1,085.25. What is the yield to call of the bond?

What was annual increase in the value of the comic book : what was the annual increase in the value of the comic book?

User Account

All Pages