Summary: Professional Assignment 2 - (CLOs: CLO 1, CLO 2, CLO 4, CLO 5)1- a. Search Yahoo Finance or...

Question

Summary:
Professional Assignment 2 - (CLOs: CLO 1, CLO 2, CLO 4, CLO 5)
1-
a. Search Yahoo Finance or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation. Provide these statements in proper format. Also, retrieve the data on the company's stock annual rate of return for the past 20 years. In addition, retrieve annual rate of return of a major financial index. Present this data as well.
. Using the data on company's stock rate of return and the index's rate of return estimate beta of the corporation. Compare this value with the value stated by the source. Adjust the beta you calculated to obtain unleveraged beta.
c. Retrieve the risk-free rate of return as the annual interest rate of US treasuries. Based on these values estimate the expected annual rate of return of the corporation's security.
d. Using the financial statements mentioned above estimate the annual rate of interest paid by the corporation (cost of debt). Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found estimate the annual weighted cost of capital (WACC) of the corporation.
2- Suppose that the corporation is offered an investment which has the following cash flows.
    Yea
    Cash flow
    0
    -$10,000.000
    1
    $1,500,000
    2
    $1,500,000
    3
    $1,500,000
    4
    $1,500,000
    5
    $1,500,000
    6
    $1,500,000
    7
    $1,500,000
    8
    $1,500,000
    9
    $1,500,000
    10
    $1,500,000
Use the WACC that you estimated in part(a) to examine if this investment viable?
For each part above state the problem before answering the questions, provide clear justifications, explain your work in detail, and cite all references used for development of the content.
PS: ****** Please use a word document for this assignment, you can use excel to calculate and screenshot the calculation and post on the the document file. YOU MUST SUBMIT THIS ASSIGNMENT IN WORD DOCUMENT File .
Support your statements with six (6) peer-reviewed in-text citation(s) and
eference(s). WORD LIMIT 600.
The 6 peer reviewed reference articles can be found in the LIRN li
ary in my school website.
!!! PLEASE use at least 6 sources to write the paper !!!
Gap.westcliff.edu
ID - b182396
Password: Westcliff#136
After you enter to the mainpage scroll down and you will see a big yellow balloon logo with letter "LIRN" thats the li
ary where you access to the sources.
!!! PLEASE use at least 6 sources to write the paper !!!

550-pa2-zl5iz2p3.docx

Sugandh · Accepted Answer

4
Practical Analysis 
Student Name
Student Number
Course Name
Course Number
Date
Assignment Details
Answer to the QUESTION 1
A) 
 Company taken is the Exxon Mobil
Income Statement of Exxon Mobil
	Breakdown
	12/30/2020
	12/30/2019
	12/30/2018
	Total Revenue
	17,85,74,000
	25,55,83,000
	27,93,32,000
	Cost of Revenue
	17,04,47,000
	19,96,25,000
	21,15,99,000
	Gross Profit
	81,27,000
	5,59,58,000
	6,77,33,000
	Operating Expense
	3,75,75,000
	4,31,92,000
	4,56,09,000
	Operating Income
	-2,94,48,000
	1,27,66,000
	2,21,24,000
	Net Non Operating Interest Income Expense
	-11,58,000
	-8,30,000
	-7,66,000
	Other Income Expense
	17,23,000
	81,20,000
	95,95,000
	Pretax Income
	-2,88,83,000
	2,00,56,000
	3,09,53,000
	Tax Provision
	-56,32,000
	52,82,000
	95,32,000
	Net Income Common Stockholders
	-2,24,40,000
	1,43,40,000
	2,08,40,000
	Diluted NI Available to Com Stockholders
	-2,24,40,000
	1,43,40,000
	2,08,40,000
	Basic EPS
	-
	3.36
	4.88
	Diluted EPS
	-
	3.36
	4.88
	Basic Average Shares
	-
	42,34,000
	42,37,000
	Diluted Average Shares
	-
	42,70,000
	42,37,000
	Total Expenses
	20,80,22,000
	24,28,17,000
	25,72,08,000
	Interest Expense
	11,58,000
	8,30,000
	7,66,000
	Net Interest Income
	-11,58,000
	-8,30,000
	-7,66,000
	Net Income from Continuing & Discontinued Operation
	-2,24,40,000
	1,43,40,000
	2,08,40,000
	Normalized Income
	-2,24,40,000
	1,43,40,000
	2,08,40,000
	EBIT
	-2,77,25,000
	2,08,86,000
	3,17,19,000
	EBITDA
	-
	-
	-
	Reconciled Cost of Revenue
	17,04,47,000
	19,96,25,000
	21,15,99,000
	Reconciled Depreciation
	4,60,09,000
	1,89,98,000
	1,87,45,000
	Net Income from Continuing Operation Net Minority Interest
	-2,24,40,000
	1,43,40,000
	2,08,40,000
	Normalized EBITDA
	1,82,84,000
	3,98,84,000
	5,04,64,000
Balance Sheet of Exxon Mobil
	Breakdown
	12/30/2020
	12/30/2019
	12/30/2018
	Total Assets
	33,27,50,000
	36,25,97,000
	34,61,96,000
	Total Liabilities Net Minority Interest
	16,86,20,000
	16,36,59,

Summary: Professional Assignment 2 - (CLOs: CLO 1, CLO 2, CLO 4, CLO 5) 1- a. Search Yahoo Finance or any other credible source to retrieve the most recent income statement and balance sheet for a...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment