Select Page

Your Perfect Assignment is Just a Click Away

Starting at \$8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!

## FIN 420 AIB Explain WACC & How Can You Use It in Decisions Lockheed Martin CO Ques

### Question Description

I’m working on a finance project and need a sample draft to help me learn.

you need to compute the companys overall weighted average cost of capital (WACC). Write up your analysis (should not exceed 6 pages) adhering to the following steps:

• An introductory paragraph briefly talking about your company and why you chose it.
• Estimation of the risk-free rate (provide the value, source, date, as well as short explanation behind your answer)
• Estimation of the equity market risk premium (provide the value, source, as well as short explanation behind your answer)
• Estimation of beta (use the monthly stock prices of the last 5 years to estimate the beta, present the estimation in a graph, and interpretation of what the beta of your company implies)
• Computation of your estimated cost of common equity[1] using CAPM (points 2,3,4 above). For comparison of your estimated cost of common equity, compute the cost of common equity using the dividend discount model as well, in this case show the estimation of the upcoming dividend and growth in dividends (provide the value, source, for all your computations).
• Estimation of cost of debt[2] (provide the value as well as a short explanation behind that)
• Estimation of the WACC (describing in detail how you got the target capital structure weights, including the sources and dates of when the information was gathered).[3]
• Explain what the WACC means, how can you use it in decisions, and do you think that you got a reasonable estimate.
• Explain why a MNC company might need to use a different cost of capital to evaluate the projects of its foreign subsidiaries rather than using the domestic parents cost of capital.
• Explain what the WACC means, how can you use it in decisions, and do you think that you got a reasonable estimate.

Useful Data Sources:

– To get the US treasury bills and bonds rates go to : www.ustreas.gov

– To get the companys stock price and beta visit MSN money, Yahoo Finance, or any other finance web source of your choice

– To get the companys financial statements, go to the companys website, or the SEC website- Filings  Edgar search tools (http://www.sec.gov/edgar/searchedgar/webusers.htm#.U3Jnfv1OXIU). Search for form 10 K (annual report).

– To get the default risk premium rates go to Damodarans website ( http://damodaran.com ) , go to capital structure, and then Ratings, spreads, and Interest coverage rates.

"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

## Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.

Free resources
Dissertation help
Email