I don’t know how to handle this Excel question and need guidance.
Mini-Project 3: Weighted Average Cost of Capital (100 points):
Find the 2018-2019 financial statements (Balance Sheet, Income Statement) for a publicly-traded HIGH-TECH company from UHV Mergent Online database, Yahoo! Finance, Google Finance, or other financial data sources. Each student should choose a different company at your choice.
(1) Conduct a financial ratio analysis of the company.
(1) Estimate the weights of capital (debt, preferred stock, and common stock) for the company.
(2)Estimate the before-tax and after-tax component cost of debt for the firm.
(3)Estimate the component cost of preferred stock (if applicable) for the firm.
(4)Estimate the component cost of common equity using CAPM for the firm.
(5)Compute the firm’s weighted average cost of capital (WACC). Discuss your findings.