F Assignment 2 Quantitative Exercises And Final Project 3 Government Securities

Required:

Calculate Barbow’s after-tax weighted average cost of capital, using the data in the balance sheet above.

Deliverable:

By Saturday, February 6, 2016, submit the completed assignment to the W4: Assignment 2 Dropbox. Use a Microsoft Excel spreadsheet that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

Name your document SU_FIN2030_W4_A2_part1_LastName_FirstInitial.

Part Two:  Final Project 3: Government Securities

In this part of your Final Project, you will research and analyze current information (that is, within the past two months) on government securities.

Step 1: Go to a financial Web site to do your research. The following are three suggested sites, but you may use others. Be sure to cite your sources!

• finance.yahoo.com
• http://www.google.com/finance
• moneycentral.msn.com

Step 2: Research current information (within the last two months) on the yields and maturity for:

1. U.S. treasuries
2. Municipal bonds
3. Corporate bonds

Required:

• Discuss what the pure expectations theory would imply about the yield curve.
• Compare and contrast the yields and maturities for each of the securities.
• Discuss which you would hold and why relative to interest rate risk.

Deliverables:

By Saturday, February 6, 2016, submit your responses to this Final Project assignment to the W4: Assignment 2 Dropbox. Your submission may be in a 3–6 page Microsoft Word or Excel document. Include a Microsoft Excel document that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

Inputs for WACC Calculation:Risk free rate (%)Yield-to-Maturity of debt (%) 12.00%11.50% Equity risk premium (%)Beta of equity 7.50%1.66 Corporate tax rate (%) 30% Common shares (MM)Share…