Stock price and number of shares outstanding

Collect the following data for the company assigned to you:
• Beta (use the current beta available at Marketwatch.com)
• Stock price and number of shares outstanding
• Interest-bearing debt from the last year’s balance sheet
• Taxes and taxable income from the last year’s income statement (tax rate = taxes/taxable income)
• 10-year Treasury yield
• There are three methods to calculate the cost of debt
1. Find the company’s bond rating from Capital IQ and then pick the yield spread from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ratings.htm
2. Collect long-term bonds’ yield to maturity from Capital IQ, and then take the average
3. Divide the interest expense from the last year’s income statement by total interest bearing debt from the last year’s balance sheet (this is the least preferred method)

Calculate the weighted average cost of capital of the company. For the cost of equity, use a 6% market risk premium.

 

Sample Solution

y role consists of daily involvement with our internal stakeholders, I believe stakeholder engagement is vital to the success and improvement in a school, I issue weekly newsletters to parents with school activity updates, arrange weekly staff meetings and assemblies for pupils, this is to ensure internal stakeholders are kept informed and the school is securing the community’s obdurate support.
“Community-engagement strategies are also widely considered central to successful school improvement by many individuals and organizations that work with public schools” (Great School Partnership, 2014:1)

As an admin officer reporting to the office manager, my role consists of: undertaking all office administration including weekly HR returns. As a recent member of the admin team I have developed exceptional working relationships with my colleagues and leadership team. My work experience and corporate background allows me to conduct myself in a professional manner and create a cohesive working environment.

As an aspiring SBM and referring to the NASBM framework, I believe I obtain the required skillset to become a SBM. In my previous role as HR Supervisor I developed my personal skills to provide direction and facilitated change in the work place, I supervised staff and monitored their progress. I have acquired transferable skills in relation to process, systems and procedures. I currently fall in tier 1 on the NASBM Professional Standards disciplines, but believe with my previous experience can also fall in tier 2 in the HR and Marketing area, I am certain by completing this course I will develop my skills further in areas such as Finance and Infrastructure.

Part 2 – Establishing your professional needs

2.1: Review own personal skills and characteristics as a learner

My dominating style of learning is reflective; Learning style diagnostic supported this, reflective practice has increased my self-awareness, which is a key component of emotional intelligence, it also helps me to develop creative thinking skills. My learning style might have an affect on some parts of the unit on this course where I cant relate to or had personal experience in certain tasks at work, but this is where I am able to adapt my learning and communication style, as different tasks and different people require different approaches for the best end result. The Time Management Matrix showed most of my duties fall between Quadrant 1 to 3, this consists of dealing with upset parents, photocopying or incoming calls, however to manage my time more effectively I use simple tools such as:

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