Select Page

financial analyse

. a)  What is Weighted Average Cost of Capital ?                    Explain and derive each component part.       b)  Utilizing the company that you have analyzed, estimate its WACC.       c)  What is capital budgeting ?       d)  What is a target capital structure ?       e)  Derive the Net Present Value methodology of capital budgeting, and explain the use of WACC. Answer any two questions.  Please be sure to complete all parts of each question that you select.(below) Regarding equities (stock):           a.  What is stand-alone risk ?           b.  How is it measured ?  Create an example and compute the risk                    measurement.           c.  What is market risk ?                    (1) What is the connection of a stock to market risk ?                    (2) Define and provide the formula to determine a stock’s market                              risk.    2.   a)  What is an Investment portfolio ?        b)  Using historical data:  create a portfolio, and solve for the portfolio’s                   average, annual return.                   [Suggestion:  Pick  4 – 10 different companies to comprise the                              portfolio].        c)  How would we measure the risk of the PORTFOLIO /        d)  What is the  conclusion of the  Capital Asset Pricing Model with regard                    to a portfolio ?                     What are the important conclusions that this model offers                              regarding investment portfolios ?                                              3.    a)  Why must working capital be “managed” ?        b)  What is (are) the goal(s) of working capital management ?        c)  Create an example and explain the Cash Budget.        d)  How is a Cash Budget distinct from an Income Statement ?        e)  What are some techniques that a company may undertake to                    improve its working capital position ?