Part C: Bond Analysis

You will analyse Procter & Gambles outstanding bonds. Firstly, calculate the credit spread of this bond, using the yield on Treasury bonds of comparable duration. You will need to compute the rate of return that investors currently require for holding this bond. To simplify your calculations, assume that the last coupon payment has just been made. Estimate the bonds price one year from now (assume that interest rates remain constant), and provide commentary. Finally, provide a credit rating for the firms bonds, based on your analysis of the company bond and explain.

Part D: Equity Analysis

You will analyse Procter & Gambles shares. Investigate and comment on the stock price changes in recent years. Explain why these changes have occurred, and link these developments to your analysis in Part B. Provide an overview of the firms dividend payments during the previous 5 years. Using the dividend discount model, estimate the return that investors currently require for holding your companys stock. You can assume that the firms dividends will continue to grow indefinitely at the same rate as the average dividend growth rate in the previous five years, or you can make alternative assumptions on the future dividend payments, as you see fit.

Part E: Cost of Capital

You will estimate your companys Weighted Average Cost of Capital (WACC). To estimate the cost of debt and cost of equity of your company, use your results in Part C and Part D respectively. Investigate which projects your company has recently invested in. Comment on whether you think these are good investments, given the firms cost of capital.

Please help me with all these parts!! I am really in need of help with these practice questions.. PLEASE HELP ME, its pretty urgent ): The data are all in yahoo finances... Please help me... I am rlly stuck on this and have noidea which numbers to use. WOuld really apreciate if you could solve these 3 parts for me. I RLLY DONT UNDRSTAND... im using 5y (2016-2020)