Financial Administration Assignment - WACC and EnV:EBITDA Ratio Calculations
WACC (Weighted-Average Cost of Capital) and EnV:EBITDA ratio (the firm's Enterprise Value divided by its EBITDA value (Earnings Before Interest Taxes, Depreciation, and Amortization)). You must complete this assignment. All assignments may be completed individually or by working with ONE other person (see Assignment Write-up Guide for details).
Assignment Details:
- Choose three (3) publicly-traded companies in the same industry. (Do not pick Apple as they are in several industries). I can be any industry-automobile, energy, hotel, etc.
- Calculate the WACC for each firm
- Calculate the EnV:EBITDA ratio for each firm
- What is your interpretation of the data you generated? What conclusions (if any) can you make?
Help:
Use the CAPM model to calculate the cost of Capital.
Use a CAPM-like method to calculate the cost of debt for each company.
Attachment:- Assignment Files.rar