User Account

All Pages

Most publicly traded corporations are required to submit

Assignment Help Corporate Finance
Reference no: EM13376803

Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. Go to the SEC Web site, follow the "Search for Company Filings" link and the "Companies & Other Filers" link, enter "Dell Computer," and search for SEC filings made by Dell.

Find the most recent 10Q and 10K and download the forms. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either "Long-Term Debt" or "Long-Term Debt and Interest Rate Risk Management" that will list a breakdown of Dell's long-term debt. To estimate the cost of equity for Dell, go to finance.yahoo.com and enter the ticker symbol "DELL." Follow the various links to find answers to the following questions:

What is the most recent stock price listed for Dell?

What is the market value of equity, or market capitalization?

How many shares of stock does Dell have outstanding?

What is the beta for Dell?

Now go back to yahoo finance and follow the "Bonds" link.

What is the yield on 3-month Treasury bills?

Using a 7 percent market risk premium, what is the cost of equity for Dell using the CAPM?

Find the list of competitors in the industry. Find the beta for each of these competitors, and then calculate the industry average beta.

Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for Dell or the beta for the industry in this case? You now need to calculate the cost of debt for Dell. Go to cxa.marketwatch.com/finra/BondCenter/Default.aspx, enter Dell as the company, and find the yield to maturity for each of Dell's bonds.

What is the weighted average cost of debt for Dell using the book value weights and the market value weights?

Does it make a difference in this case if you use book value weights or market value weights?

You now have all the necessary information to calculate the weighted average cost of capital for Dell.

Calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has a 35 percent marginal tax rate.

Which cost of capital number is more relevant? You used Dell as a representative company to estimate the cost of capital for GCI.

What are some of the potential problems with this approach in this situation? What improvements might you suggest?

Reference no: EM13376803

Questions Cloud

One article that we have read and compare it to another : one article that we have read and compare it to another article and the comparison that you provide should begin by
Estimate debit and credit card fees the local : estimate debit and credit card fees the local japanese-style steakhouse expects sales to be 50000 in january. the
1 if you woke up in the working amp found that nominal gdp : 1. if you woke up in the working amp found that nominal gdp has doubled overnight what statistic would you need to
1 a innocent a first year business student wonders why one : 1. a innocent a first year business student wonders why one should consider scarcity and choice as basic problems in
Most publicly traded corporations are required to submit : most publicly traded corporations are required to submit 10q quarterly and 10k annual reports to the sec detailing
Please write a 1-2 pages properly formatted paper in apa : please write a 1-2 pages properly formatted paper in apa format with proper citations references and grammar addressing
Please write a 3-4 page apa formatted paper with proper : please write a 3-4 page apa formatted paper with proper citations references and a minimum of 4 reference sources
This will help you identify your own values and beliefs : this will help you identify your own values and beliefs about the established metaparadigms and metatheories of the
Term paper students self-service website for mobile devices : term paper students self-service website for mobile devices in order to provide a convenient self-service solution for

Reviews

Write a Review

Corporate Finance Questions & Answers

  Estimate the value per share of state streets equity

Estimate the value per share of State Street's equity with these assumptions and describe an improved method for measuring the annual rate of return and note why it is an improvement.

  Service level, uncertainty, safety stock, and order quantity

How does WalMart address following & how does it affect logistics operations: the relationship between service level, uncertainty, safety stock, and order quantity.

  Determine the npv and irr with and without mitigation

Determine the NPV and IRR with and without mitigation and how should the environmental effects be dealt with when this project is evaluated?

  Describe how the free cash flows approach can produce

Describe how the free cash flows approach can produce valuations of firms when they are expected to generate negative free cash flows over the next five years.

  Calculate the weighted average cost of capital

Calculate the weighted average cost of capital (WACC) for existing capital

  Computing the monthly interest rate

You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

  Discuss the nature of consortium

Discuss and explain the nature of the consortium and evaluate the role of each player and also assess the impact of consortium's involvement on project.

  Finding the best alternatives between two stocks

Suppose you are comparing stock A and B. Given the following data, which one of these two (2) Stocks should you prefer explain your reasoning.

  Develop a financial plan to evaluate the venture

Karl believes that he could invest his redundancy lump sum at 5% per annum and therefore suggests that you use 5% as the after tax discount rate for a discounted cash flow analysis.

  What is equivalent constant annual average return

What is the total return over the three years to an investor who buys the stock at 150p and holds the stock for three years, reinvesting intermediate dividends back into the stock? What is the equivalent constant annual average return over the thr..

  Differences between managed care and traditional cost

Discuss the differences between managed care and traditional cost or reimbursement models? Use at least two published peer-reviewed journal articles from within the past 3 years.

  Calculate firms expected fixed assets turnover ratio

Girard Corporation had sales of 1,120,000 dollar past year on fixed assets of $270,000. However, Girard's fixed assets were being used at only 90 percent of capacity.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd