The ADT Corporation (TYCO)
Problem 1. What are the operating risks of the company?
Problem 2. What is the financial risk of the company (the debt to total capitalization ratio)?
Problem 3. Does the company have any preferred stock?
Problem 4. What is the capital structure of the company?
Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding?
Problem 5. What is the company's current actual Beta?
Problem 6. What would the Beta of this company be if it had no Long Term Debt in its capital structure? (use the Hamada Formula)
Problem 7. What is the company's current Marginal Tax Rate?
Problem 8. What is the Cost of Debt, before and after taxes?
Problem 9. What is the Cost of Preferred Stock (if any)?
Problem 10. What is the Cost of Equity?
Problem 11. What is the cash dividend yield on the Common Stock?
Problem 12. What is the Weighted Average Cost of Capital of the company?
Problem 13. What is the Price Earnings Multiple of the company?
Problem 14. How has the company's stock been performing in the last 5 years?
Problem 15. How would you assess the overall risk structure of the company in terms of its Operating Risks and Financial Risk (Debt to Capitalization Ratio)?
Problem 16. Would you invest in this company? Why? Or Why not?
https://media.corporate-ir.net/media_files/irol/11/112348/TYC_%20ADT_Corporation_Form_10.pdf.