FINAL ASSIGNMENT Your final assignment consists of 15 open ended questions. Verizon (VZ) is the company you will analyze and you will need to use their 2020 quarterly financial statements to answer many of the questions. For questions 1-5, please use the following information:

risk free rate: 1.75%

expected rate of return for the market: 9.5%

Beta of VZ: 0.88

VZ total debt, interest and shares issued can be found in VZ financial statements

assume market value of all debt is 100% of face(par) value

tax rate is 20% VZ stock price: $55

initial investment: 4,500,000

year 1 cash flow: 1,100,000

year 2 cash flow: 1,200,000

year 3 cash flow: 1,350,000

year 4 cash flow: 1,550,000

year 5 cash flow: 1,750,000

BASED ON THE ABOVE INFORMATION CALCULATE THE FOLLOWING:

1. Cost of equity (7 points

2. After tax cost of debt (7 points)

3. Weighted average cost of capital (WACC) (7 points)

4. Net present value of the investment (NPV) (7 points)

5. Internal rate of return of the investment (IRR) (7 points)