Part One: Ratio Analysis

Pick one debt ratio and one profitability ratio, which you did not analyze, from the week three portfolio milestone. Research a publicly traded technology company and access the financial statements needed to calculate those two ratios.

Provide a cross-sectional analysis comparing the results from TechnoTCL Download TechnoTCLand your chosen company for the two ratios.

Prepare a presentation (maximum of 4 slides - no speaker notes required) with the following information:

• Slide One: Analyze the two ratios including how the ratio is calculated and how it is used.
• Slide Two: Introduce the public company chosen, describe the information used for the ratios and calculate the two selected ratios.
• Slide Three: Show the two ratios for the two companies (your company and TechnoTCL) in a table.
• Slide Four: Compare and contrast the key differences between the ratios for the two companies and what they might indicate.

Part Two: Require Return for Capital Funding

1. Suppose that TechnoTCL is considering a new project. They are trying to determine the required rate of return for their debt and equity holders. See the information below:
2. A 6.5% percent annual coupon bond with 15 years to maturity, selling for 96% of par. The bonds make annual payments. What is the before tax cost of debt? If the tax rate is 30%, what is the after-tax cost of debt?
3. The firm's beta is 1.5. The risk-free rate is 4.0% and the expected market return is 10%. What is the cost of equity using CAPM?
4. Use the balance sheet for TechnoTCL to determine the weighting for capital used by the company. What are the weightings for long-term debt and common equity? Calculate the WACC for TechnoTCL.
5. If the company has three possible projects with the following characteristics and has $300,000 available to fund capital investments, what decision should be made for each project (A-C)? Why?

Project	Expected Return	Capital Required
A	8.8%	$30,000
B	12.5%	$150,000
C	9.6%	$160,000

Submission Guidelines

• Add to your existing presentation from Part One, create one slide each for item above (numerical items 2-5). No speaker notes are required.
• Include a minimum of four (4) credible sources in addition to the public technology data source in APA format.