Question: Using spreadsheets to solve complex problems is a key competence in fact a requirement for many middle management positions in the workplace. Corporate finance provides

Using spreadsheets to solve complex problems is a key competence in fact a requirement for many middle management positions in the workplace. Corporate finance provides many opportunities to use MS Excel to solve problems that cannot easily be solved manually. In this assignment, you will be applying the basic calculation tools to analyze the cost of capital for a corporation and apply calculate the weighted average cost of capital. Instructions: 1. Use the scenario below to answer the questions. 2. Use MS Excel for all calculations or the BA II plus calculator and MS Word to submit your assignment. 3. Submit your report in MS Excel format. Attach any supporting Excel documents to the D2L assignment tool. Question 1: (10 marks) Find the following Betas for the companies listed below: (use www.yahoofinance.com) Assuming a risk free rate (Rf) of 2% and the Return from the market (Rm) of 6.5% calculated the expected return of each company based on the Capital Asset Pricing Model. Company Stock Symbol Beta Expected Return TD Bank TD-T Royal Bank RY-T Canadian Tire Corporation CTC.A-T Suncor Energy SU-T Stantec Inc. STN-T Netflix NFLX-Q Facebook FB-Q Microsoft MSFT-Q Apple AAPL-Q Amazon AMZN-Q Alphabet Inc. (Google) GOOGL-Q Starbucks SBUX-Q Re-order your list from the lowest beta to the highest and compare their expected return. a) Comment on your results. (Hint: Look at the grouping of the companies, and the value of betas from 0 to 0.5, from 0.5 to 1, from 1 to 1.25 and 1.25 and up) b) What does the value of beta tell us about a company? What does the value of beta and CAPM tell us about the risk in investing in a company?

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