CLA 2 Comprehensive Learning Assessment II – (CLOs covered : 1, 2, 3, 5, 6,7,8)

Consider two companies: United States steel (X) and Facebook (FB). Look at the profiles (financial statements for 2016) of each on yahoo finance and discuss the followings  (you need to calculate these values yourself and show details of your calculations): 

How many outstanding shares the company has? 

What is the market value of the company?

What is the book value of the company? 

What is the beta for the company? 

How do you find the risk free rate? 

(consider the market risk premium to be 8%)

Using CAPM calculate the expected return on the equity for the company. 

(To get the required rate of return on debt, divide the interest expense by total debt) 
(To get the total debt, add the short term debt to long term debt)

What is the Weighted average cost of capital (WACC) for the company? 

What is the leverage (total debt/equity ratio) for the company?

 In addition to your CLA2 report, please prepare a professional PowerPoint presentation summarizing your findings for CLA2. The presentation will consist of your major findings, analysis, and recommendations in a concise presentation of 18 slides (minimum). You should use content from your CLA2 report as material for your PowerPoint presentation. In addition, you should include learning outcomes from all your major assignments. This would include PA1, CLA1, PA2, and of course, CLA2 (unless otherwise specified by your Professor). An agenda, executive summary, and references slides should also be included. Please keep in mind that the university is moving towards a more digital footprint for our students. This means that your final CLA2 presentation may be recorded, so that you may include it in your “e-portfolio” (graduating students should have all of their CLA2 presentations on a flash-drive, in addition to student biography, resume, interests, etc.)