Corporate Finance

800 – 1000 words

Key Assignment

Choose a public company,
and present findings from your financial analysis in a report. 

• Give a description of the
  operating profit margin.
• Give a description of the asset
  turnover.
• Give a description of the equity
  multiplier.
• Give a description of the return
  on equity.
• Give a description of the return
  on assets.
• Calculate the operating profit
  margin. Explain your answer.
• Calculate the asset turnover.
  Explain your answer.
• Calculate the equity multiplier.
  Explain your answer.
• Calculate the return on assets.
  Explain your answer.
• Calculate the return on equity.
  Explain your answer.
• What does the DuPont analysis
  describe about the company chosen?
• Which ratio demonstrates the
  company’s weakest area? Explain your answer.

Part II

Using the same company from
Part I, write a report of 800–1,000 words that demonstrates your understanding
of the cost of capital and risk. Specifically, you are to include the
following:

• Give a description of the weighted
  average cost of capital.
• Give a description of the capital
  asset pricing model.
• Give a description of the security
  market line.
• Give a description of the cost of
  debt.
• Calculate the weighted average
  cost of capital. Explain your answer.
• Calculate the cost of debt.
  Explain your answer.
• How would you restructure the
  firm’s debt? Explain your answer.