17 Aug In this assignment, you will estimate the weighted average cost of capital of a publicly traded company:
In this assignment, you will estimate the weighted average cost of capital of a publicly traded company: Telus. Although you must use the most recent stock market data, you should use the 2019 Annual Report for the financial statement information. You are required to follow the instructions outlined below and produce a report in the form of an executive summary, which should be no more than one page long. The report should stand on its own, so you must include a spreadsheet that includes all the data and formulas, but only as a reference tool to support your pdf (not Word) document.
There are 100 marks available for this assignment. See the marking guide below for mark distribution. Make sure to carefully watch the screencast from this module before completing this assignment. Do not forget to properly reference all of your sources and clearly justify any assumptions.
Instructions
To estimate the cost of capital, you will need to estimate the cost of equity of the company using the capital asset pricing model. You need to estimate beta yourself (using the most recent stock market data), showing the calculations in the accompanying spreadsheet, the cost of debt, and the appropriate weights to use for each of them. Because data on preferred shares can be difficult to find, you can ignore them for the purposes of this assignment. Does your estimate seem reasonable? Why or why not?
Marking Guide
- Professional presentation of your report including referencing (10 marks)
- Correct use of CAPM to estimate cost of equity (30 marks)
- Appropriate methods used to estimate cost of capital (30 marks)
- Discussion of reasonability of your estimate (30 marks)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.