Hello, I am looking for someone to do this for my work. I have already done one like this and will provide an example of it to follow.
Budget: $250 – $750 CAD
• Background and context (typically 1 - 3 pages)
o Very briefly describe the nature of the firm - their business, their recent performance
o Choose one product market rival and compare the capital structure of the firm to its rival
• Estimate the cost of capital components and so the WACC (very important)
o Cost of equity (beta AND dividend discount model)
• Download stock and index returns from CRSP or CFMRC and calculate beta and
expected market return; download risk free rates from the central bank website.
• Collect dividend payment information, estimate growth rates and calculate cost of
equity using the dividend discount model.
o Cost of debt (bond pricing data, debt ratings, rate of interest for similar debt)
• Collect cost of debt for each component of debt listed on the annual report.
• For traded bonds collect YTM and market values from Bloomberg
• For non-traded debt estimate these values.
• If you are able to, provide robustness tests using information from debt
ratings / Z scores using comparable debt to compute implied cost of debt.
o Cost of preferred shares – if applicable. In most such cases, you can use the stated rate.
o Alternative sources of data may be used if they are reliable – effective use of additional data
sources can enhance your analysis. Alternative methodologies (in addition to the ones
described above) are encouraged and will only make your analysis stronger.
Maximum of 20 pages (style guidelines - font size 10 or larger,
margins 2cm or more, line spacing 1.5 or more) or less of text (note that this is a firm upper limit, and you
will be penalized for exceeding it) plus any annexures. Be concise and clear You also need to
submit an Excel spreadsheet to show any extra work you may have done as well as basic calculations
(such as beta and final WACC).
Additionally, please note that:
• You must reference your sources
Some useful sources
• Edgar - US proxy, 10K, 10Q and other filings available from http://www.sec.gov/edgar.shtml.
• Sedar - Canadian filings from http://sedar.com/
o Please use 10K (audited annual statements) for your main analysis – 10Q can be used for
supplementary analysis if needed.
• Mergent Online - Annual reports and financial statements
• CRSP or CFMRC for stock price and index data
• For bond information, use the Bloomberg software
o Very briefly describe the nature of the firm - their business, their recent performance
o Choose one product market rival and compare the capital structure of the firm to its rival
• Estimate the cost of capital components and so the WACC (very important)
o Cost of equity (beta AND dividend discount model)
• Download stock and index returns from CRSP or CFMRC and calculate beta and
expected market return; download risk free rates from the central bank website.
• Collect dividend payment information, estimate growth rates and calculate cost of
equity using the dividend discount model.
o Cost of debt (bond pricing data, debt ratings, rate of interest for similar debt)
• Collect cost of debt for each component of debt listed on the annual report.
• For traded bonds collect YTM and market values from Bloomberg
• For non-traded debt estimate these values.
• If you are able to, provide robustness tests using information from debt
ratings / Z scores using comparable debt to compute implied cost of debt.
o Cost of preferred shares – if applicable. In most such cases, you can use the stated rate.
o Alternative sources of data may be used if they are reliable – effective use of additional data
sources can enhance your analysis. Alternative methodologies (in addition to the ones
described above) are encouraged and will only make your analysis stronger.
Maximum of 20 pages (style guidelines - font size 10 or larger,
margins 2cm or more, line spacing 1.5 or more) or less of text (note that this is a firm upper limit, and you
will be penalized for exceeding it) plus any annexures. Be concise and clear You also need to
submit an Excel spreadsheet to show any extra work you may have done as well as basic calculations
(such as beta and final WACC).
Additionally, please note that:
• You must reference your sources
Some useful sources
• Edgar - US proxy, 10K, 10Q and other filings available from http://www.sec.gov/edgar.shtml.
• Sedar - Canadian filings from http://sedar.com/
o Please use 10K (audited annual statements) for your main analysis – 10Q can be used for
supplementary analysis if needed.
• Mergent Online - Annual reports and financial statements
• CRSP or CFMRC for stock price and index data
• For bond information, use the Bloomberg software