Finance 3
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SLPRequirements-READ.docxFINANCE - Must be plagiarism free and 100% original
Research on the capital structure of four companies (given through chat upon agreement). You will also be doing an overall assessment of these four companies based on the research you did for your Module 1-4 SLPs.
Write a two- to three-page paper addressing the following issues:
Go to investing.com or a similar page and find the long-term debt to total equity and the total debt to equity ratios for your four companies. Investing.com should also give you the industry averages for these ratios. Based on these ratios, do your four companies have a greater relative debt load than the average of their industry? Do any of them seem at risk for bankruptcy?
How does the debt ratios align with the credit ratings you found for your Module 2 SLP or the beta that you found for your Module 3 SLP? Do the companies with higher debt ratios have lower credit ratings or larger betas, and do the companies with lower debt ratios have higher credit ratings and lower betas?
Finally, what is your overall assessment of your four companies based on your research for your Modules 1-4 SLPs? Which ones do you think are good investments based on your research? Which companies do you think are bad investments? Rank your four companies from best to worst investment. This part of the assignment should be at least one page.
Assignment Expectations – ONLINE RESOURCES with Links ONLY
· Answer the assignment questions directly.
· Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.
· For computational problems, make sure to show your work and explain your steps.
· For short answer/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations.
References (You can use additional references but they must be available online with links)
Weston, J. (2016). Net present value. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/wNUmz/net-present-value-npv
Weston, J. (2016). Internal rate of return. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/0Sj9e/internal-rate-of-return-irr
Weston, J. (2016). Debt vs. Equity. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/BlMNB/debt-vs-equity-financing
Clifford, J. (2014). Time value of money. ACDC Leadership. https://www.youtube.com/watch?v=nfkqCv3Rd_g
Khan, S. (2008). Introduction to present value. Khan Academy. https://www.youtube.com/watch?v=ks33lMoxst0&t=483s
Gitman, L. (2005). Chapter 9: Capital budgeting techniques: Certainty and risk. Principles of Managerial Finance. Pearson Education. http://wps.aw.com/wps/media/objects/222/227412/ebook/ch09/chapter09.pdf
http://wps.aw.com/wps/media/objects/338/347080/ebook/ch09/chapter09.pdf
Ross, S., Westerfield, R., Jaffe, J. & Bley, J. (2013). Chapter 17: Capital structure: Limits to the use of debt. Corporate Finance. McGraw-Hill. Retrieved from: http://highered.mheducation.com/sites/dl/free/0037151712/1007796/Sample_chapter.pdf . If the link is not working, try: highered.mheducation.com/sites/dl/free/0077151712/1007796/Sample_chapter.pdf
Finally, review how to calculate NPV and IRR using Excel. This spreadsheet has the calculations from the Excel example on pages 347-349 or Gitman (2005) and an example from the Graulich video linked below.
Graulich, V. (2012). How to calculate NPV and IRR (Net Present Value and Internal Rate Return) EXCEL. IHateMath.com. Retrieved from: https://www.youtube.com/watch?time_continue=4&v=kCnwCplibAk
Hamilton, K. (2014). Excel NPV IRR. Retrieved from: https://www.youtube.com/watch?v=HTJh5yxphMs
Ross, S., Westerfield, R., & Jordan, B. (2007) Chapter 8: Net present value and other investment criteria. Essentials of Corporate Finance. McGraw Hill. http://novellaqalive2.mheducation.com/sites/dl/free/007000000x/484691/Part5_Chap8.pdf Here are some alternative links in case the link above does not work:
Thirumalai, R. (n.d.) Internal rate of return and payback. Coursera. Retrieved from: https://www.coursera.org/learn/accounting-finance/lecture/JN9QP/internal-rate-of-return-and-payback-period
Fabozzi, F. J., & Peterson Drake, P. (2009). Chapter 13: Capital Budgeting: Process and Cash Flow Estimation Finance: Capital Markets, Financial Management, and Investment Management. Hoboken, N.J.: Wiley. [EBSCO eBook Collection]
