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ACC Assignment

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1. Based on the information below, calculate the weighted average cost of capital.;Great Corporation has the following capital situation.;Debt: One thousand bonds were issued five years ago at a coupon rate of 8%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 36%;Preferred stock: Two thousand shares of preferred are outstanding, each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value. They're now selling to yield 8%.;Equity: Great Corp has 125,000 shares of common stock outstanding, currently selling at $14.48 per share. Dividend expected for next year is $1.00 and the growth rate is 5%.;2. Part 1 For this assignment you will conduct a comparative DuPont analysis of two companies. Using a search engine, find one large corporation included in the S&P 500. Then, find one of its largest competitors. Go to the investor relations portion of each corporation?s homepage and find their most recent annual report. Calculate a complete DuPont analysis calculating the ROE, ROA, the profit margin, total asset turnover and equity multiplier. Critique the differences between the two corporations in approximately 100 words.;Part 2 Using the most recent income statements (annual) for the two corporations from Part 1 of the assignment, calculate a common size analysis using a spreadsheet. Discuss the differences in the two corporations in approximately 75 words. Your answer can be completed below your spreadsheet analysis.;Submit Part 1 and Part 2 together in one document.

 

Paper#77534 | Written in 18-Jul-2015

Price : $22
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