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Derive a complete dupont analysis of the firm

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Reference no: EM13893953

Please perform the following financial analysison the company of your choice. For every piece of financial information used, you must specify the date and source.

1. Find a recent Balance Sheet and Income Statement and compute the CFFA for your chosen firm. Please provide all intermediate computations.

2. Derive a complete DuPont Analysis of the firm.

3. Obtain the Internal and Sustainable Growth Rates for your selected company. Please report all intermediate calculations.

4. If your chosen firm has issued debt, please find a currently traded bond, report its market price, maturity date, coupon rate and YTM. Please compute the PV using the time value of money methodology and compare it to its given market price. (Morningstar.com is a good source for bond information). According to your calculations, is this bond under- or overvalued?

5. Find the selected company stock's dividend yield and compute its capital gains yield, g*, to obtain the Required Return on the stock R.

6. Using the stock closing price over 5 consecutive days, please compute the stock price's Standard Deviation.

7. Please find the stock's β, the year-to-date return on the S&P 500 and the most current 3-month Treasury bill. Use the CAPM formula to derive your chosen firm's stock return. (The return on the S&P 500 is assumed to be the return on the market portfolio and the 3-month T-Bill is equivalent to the risk free rate).

[ g*= (P'-Po)/ Po ; Please use Po as the stock price on the last dividend payment and P' as the current price]

Reference no: EM13893953

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