Assignment: Financial Management Paper
Length: 4 to 6 pages.
Consider two companies: United States Steel (X) and Facebook (FB).
Look at the profiles (financial statements for 2016) of each on yahoo finance and discuss the followings (you need to calculate these values yourself and show details of your calculations):
1. How many outstanding shares does the company have?
2. What is the market value of the company?
3. What is the book value of the company?
4. What is the beta for the company?
5. How do you find the risk free rate?
6. (consider the market risk premium to be 8%)
7. Using CAPM to calculate the expected return on the equity for the company.
8. (To get the required rate of return on debt, divide the interest expense by total debt)
9. (To get the total debt, add the short term debt to long term debt)
10. What is the Weighted average cost of capital (WACC) for the company?
11. What is the leverage (total debt/equity ratio) for the company?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.