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FIN 2030 Final Project 2013




FIN 2030 Final Project 2013;Assignment 2: Quantitative Exercises and Final Project 3;Government Securities;Part One: Quantitative Exercises;Barbow Enterprises, Inc., is considering an expansion in their operations.;One of the first items they want to examine is their cost of capital. According;to the accounting department, the following items and their respective costs;have been identified;The cost of Common Equity: 15%;The before tax cost of debt: 12%;No Preferred stock;They have also calculated the marginal tax rate to be 40% and the stock sells;at its book value.;Barbow Enterprises Inc.;Balance Sheet;Assets;Liabilities and Owners;Equity;Cash;$240;Long Term Debt;$2,304;Accounts Receivable;480;Equity;3,456;Inventories;720;Net P&E;4,320;Total Assets;$5,760;Total Liabilities and owners' Equity;$5,760;Required;Calculate Barbow?s after-tax weighted average cost of capital, using the data;in the balance sheet above.;Deliverable;By Saturday, March 16, 2013, submit the;completed assignment to the W4: Assignment 2 Dropbox. Use a;Microsoft Excel spreadsheet that illustrates your calculations. You may use the;formulas embedded in Microsoft Excel and/or a financial calculator for these;calculations.;Name your document SU_FIN2030_W4_A2_part1_LastName_FirstInitial.;Part Two: Final Project 3: Government;Securities;In this part of your Final Project, you will research and analyze current;information (that is, within the past two months) on government securities.;Step 1: Go to a financial Web site to do your research. The;following are three suggested sites, but you may use others. Be sure to cite;your sources!;;;;Step 2: Research current information (within the last two;months) on the yields and maturity for;U.S. treasuries;Municipal bonds;Corporate bonds;Required;Discuss what the pure expectations theory would imply about the yield curve.;Compare and contrast the yields and maturities for each of the securities.;Discuss which you would hold and why relative to interest rate risk.


Paper#78064 | Written in 18-Jul-2015

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