Order Number |
476878823 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
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)