Finance for managers Paper
Question Description
Consider two companies: United States Steel (X) and Facebook (FB).
Look
at the profiles (financial statements for 2016) of each on yahoo
finance and discuss the followings (you need to calculate these values
yourself and show details of your calculations):
a) How many outstanding shares does the company have?
b) What is the market value of the company?
c) What is the book value of the company?
d) What is the beta for the company?
e) How do you find the risk free rate?
f) (consider the market risk premium to be 8%)
g) Using CAPM to calculate the expected return on the equity for the company.
h) (To get the required rate of return on debt, divide the interest expense by total debt)
i) (To get the total debt, add the short term debt to long term debt)
j) What is the Weighted average cost of capital (WACC) for the company?
k) What is the leverage (total debt/equity ratio) for the company?
1. Answer each questions and explain the difference between the two companies according to the questions.
2.After answer all the questions compare the two companies financial statements for 2016 and explain how they operated in 2016.
3.Use APA format.
4.The paper should be 5-6 pages.
5.Requested 5-6 resources.
Provide
your explanations and definitions in detail and be precise. Provide
references when necessary. Explain in your own words. Support your
statements with peer-reviewed in-text citation(s) and reference(s).
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