What is the market value and book value of the company

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Reference no: EM132354665

Assignment: Consider two companies:

Look at the profiles (financial statements for 2018) of each on yahoo finance and discuss the followings (you need to calculate these values yourself and show details of your calculations):

• How many outstanding shares the company has?

• What is the market value of the company?

• What is the book value of the company?

• What is the beta for the company?

• How do you find the risk free rate? (consider the market risk premium to be 8%)

• Using CAPM calculate the expected return on the equity for the company.

• (To get the required rate of return on debt, divide the interest expense by total debt)

• (To get the total debt, add the short term debt to long term debt)

• What is the Weighted average cost of capital (WACC) for the company?

• What is the leverage (total debt/equity ratio) for the company?

Reference no: EM132354665

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