Paper

Write 3-5 pages.

Use Yahoo finance to access financial statements of two of the following companies

Apple (AAPL) and Wal-Mart (WMT) for 2016 and answer the following questions:

· Introduction of companies

· What is book value of the company?

· How many outstanding shares the company has?

· What is market value of the company on the last trading day?

· What is the leverage ratio (total debt/equity) for the company? (Total debt = short term debt + long term debt)

· What is risk free rate? How do you find it?

· Use CAPM to calculate the cost of equity for the company, using the Beta provided by Yahoo. Assume market risk premium of 8%.

· Calculate the WACC for the company, using cost of debt = (interest expense)/(total debt)

· What is the payout policy of the company?

· What were the financing and investing activities of the company in 2016: capital expenditures, issuing stocks or borrowings, total dividend payout?

· Conclusion

· References