Company, Scotiabank

$$ The company can be located anywhere in the world if their reports are available in English.

$$ Make sure that the company has all the $3$ types of sources of capital that we have discussed in the course $$ common stock $($obviously$,$ because it is publicly traded$),$ preferred stock and bonds.

$$ Make sure that the company has a dividend payment history of at least $6+$ years, so that you can calculate the dividend growth rate with some confidence.

$$ Be especially careful about confirming that the company has issued preferred stock, before finalizing your selection.

$$

$$ Give a brief description of the company and its business and its overall capital structure.

$$ Calculate its cost of common stock using both the methods $$ DGM and CAPM$/$SML$.$ Comment on why they are different. They WILL be different. They can be very different and that is okay! Which one would you trust more in your calculation for the WACC and why?

$$ Calculate its cost of preferred stock.

$$ Calculate its cost of debt.

$$ Calculate its Weighted Average Cost of Capital.

$$ Show detailed calculations in the report.

$$ Use all data as of the same date: for example, December $31$ of the previous year. Your calculations will be incorrect if you use different data from different dates.

$$ Please do not just borrow the calculations from any website. You must source your own data and calculate your own WACC. If you just show me the WACC from some website, you will not get any credit for the project.

$$ Make sure that it is a professional report.

Attach relevant references and documents.