For this analysis, you are to first complete theExcel file (attached). You are evaluating ticker...

Question

For this analysis, you are to first complete theExcel file (attached). You are evaluating ticker (HPP). donotuse Disney, DIS. Just change the ticker in the Excel file to HPP.

Follow the instructions on Sheet1 to go to the webpage(s) for the data. Copy/type the relevant data items into the workbook/file. Complete the cells to calculate the intermediate steps and the firm’s WACC.

You are then to write one to two pages (do not go over two pages, and do not allow Word to add an extra blank page to your file) of analysis, using the included template,Analysis template Preview the document (the template includes dummy text, but use the format. You can add headings and use single space, if you want.). Your analysis should answer:

What is the company, and what does it do?
What is the beta and cost of equity for this firm? What does the beta (and resulting cost of equity) mean for the firm, relative to the market and/or other similar firms? g. Is the beta/cost high, low, moderate? What does this resulting cost of equity mean for the company?
What is the cost of debt for this firm (this is an area that I made easier)? What does this mean for the firm, relative to the market and/or other similar firms? What does this resulting cost of equity mean for the company?
How much debt/equity does the firm have and what does this mean, in general?
What is the resulting WACC, and what does this (how does this impact) the firm? What does WACC mean (in general), and what does this specific WACC mean for this firm?
Any other relevant information.

You do not have to simply answer these points in this order. Write a narrative of your analysis and answer them in what you write up. This should be in the language of a report to your boss, the CFO of the company, a quick read of the analysis of your company.

excel-template-zfx5fau2.xlsx 6806-analysis-template-3-00ow0ppk.docx wacc-instructions-su20-vba3010d.docx

Shakeel · Accepted Answer

Sheet1
	Weighted Average Cost of Capital (WACC)
	Company Ticker ->	HPP
	ERROR:#NAME?
		$$$	% weight
	Market Capitalization (MC)	3890	51.4%
	Enterprise Value (EV)	7170
	Cash	392.14
	Debt	3672.14	48.6%
	Cost of Equity
	Beta	0.79
	Risk-free = 10-year (ticker ^TXN)	0.63%
	Market Return (from Bloomberg)	8.66%
	Cost of Equity	6.97%
	Cost of Debt
	ERROR:#NAME?
	Income Before Tax	55846
	Tax	11817
	Tax Rate	21.2%
	Cost of Debt	3.31%
	ERROR:#NAME?	4.85%
1.) Type the ticker into cell B2.  Do not use DIS.
2.) Click cell A3.
3.

For this analysis, you are to first complete theExcel file (attached). You are evaluating ticker (HPP). donotuse Disney, DIS. Just change the ticker in the Excel file to HPP. Follow the instructions...

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