It is suggested you not view yourself as a champion for your firm or as responsible for the marketing of your firm. Whether the firm is doing well or poorly will not impact your grade.
Total points possible: 450. For maximum credit be sure to answer all parts of the question and follow all directions.
Section 1 Format and historical executive summary
1. Create a cover sheet for the paper that will comprise your mid-term AND your final. Be sure to identify your name, your course and section number, your firm’s name and include my name on this cover sheet. (This sheet should not be numbered)
2. Create a Table of Contents using Roman Numerals to identify section numbers and pages. Number your pages. Begin numbering with the table of contents page.
3. Label Section I the Executive Summary. You may repeat what you turned in for the midterm. Be sure to number this question #3.
This is the start of your final
4. Section II should be labeled Capital Market Efficiency. Precisely define an efficient capital market. What causes a capital market to be efficient? Why does the efficiency of the capital market matter to the managers of the firm you are studying? Be sure to number this question #4.
5. Section III should be labeled Wall Street Journal news. Carefully choose one Wall Street Journal article about your firm between January 2022 and December 2022. Follow the format of your syllabus and respond to the questions asked there. Provide a link to the article in this question and identify its date. You may want or need to do some research about your firm to put this article in the context of the news contained in your article. Be sure to number this question #5. {If you are having trouble finding one appropriate article, you may ask Ms. Nestory for assistance, or you may go back to earlier dates one year at a time.}
6. Section IV should be labeled WACC. Calculate the WACC for your firm. Use the SSRN pdf under the web campus document in the section labeled “Quick Access Link for your midterm and final” for the risk-free rate and the market risk premium. Be sure to estimate the required return on equity using three methods discussed in class and in your text. For each parameter in the WACC calculation carefully explain why you are choosing it. Use the one bond from your midterm and the FINRA quote to estimate the bond’s YTM. Explain and document your market price and your YTM estimate in your appendix. Do not include short term debt in your WACC calculation. Most firms do not fund long term assets with short term debt. Be sure to number this question #6
