Reference no: EM13684260

For Southwest Airlines
In this project, you are supposed to be a financial manager working for a big corporation and you have to apply the knowledge obtained from the our Finance 607 course to determine the cost of debt, cost of preferred stock, cost of common equity, capital structure, and the weighted average cost of capital (WACC) for a publicly-traded company of your choice.
A. Choosing a Company and Team: Please form your own teams and then choose a publically US traded company. (hint: try finance.yahoo.com ) .
B. Obtain approval from the instructor for your specific stock, before working on this project- post on the Team Discussion board and email the instructor to verify that you were awarded that company/stock to analyze.
Be sure to thoroughly understand the company. The purpose of this assignment is for the team to utilize many of the concepts presented in the text to analysis the company you pick. Group Discussion Threads for each Team will be reviewed for individual participation.
What to include in the PowerPoint:
1.Business Overview and Strategy: Briefly describe the company, its Mission, Vision, location and products, give a little bit about it 's industry, and discuss its strategy for success. Refer especially to business description and risk factors of your company. MAXIMIUM of 2 slides.
2. Then determine the cost of debt, cost of preferred stock, cost of common equity, capital structure, and the weighted average cost of capital (WACC) for your assigned publicly-traded company (see above).
3. Develop this (item #2) into a PowerPoint where you explain how you calculated those numbers (if you want to include an Excel spreadsheet along with the PowerPoint , that is fine. ) and what was your reasoning.
4. Include in the Appendix to the PowerPoint , the financial statements you used or other documents to get those numbers.
5. You will use the WACC as the discount rate to conduct capital budgeting analysis for a project that the firm is considering and then decide whether it should be accepted or not which is " Building a new Building" for $1 million. If you do not have a number you need, research it and state your assumptions that you used to get the missing number.