1. Select a publicly traded company (preferably manufacturing oriented; do not use a financial services company such as a bank or a bank holding company) and obtain a copy of their most recent year-end financial statements. You will find that larger, more mature companies are easier to use when developing forecasts. Annual Reports can supply supplemental information and can be obtained from stock brokers, through the internet and from the companies themselves.
2. Perform appropriate ratio analyses on the balance sheet and income statements of your company using techniques discussed in chapter 2 of your textbook. Compare your company to a competitor (best) or prior years. Elaborate on your findings. From the Wall Street Journal or another source, determine your company's current stock price, current dividend, and P/E ratio. Determine the shareholder's expected rate of return and calculate your company's weighted average cost of capital.