Retrieve the risk-free rate of return as the annual interest rate of US treasuries.

RUBRIC:

Accurately retrieves risk-free rate used as US treasuries interest rate, estimates expected annual rate of return, and compares estimate with calculated historical rate of return from part b.

Calculates interest paid by corporation (cost of debt), tax rate, capitalization ratio, and WACC correctly and accurately analyzes them comparing among each other.

53 pointsRetrieves the most recent income statement and balance sheet for a major leveraged corporation in proper format.

Provides clear explanation of how to calculate annual rate of return using adjusted closing prices.

46 pointsRetrieves an accurate but incomplete income statement or balance sheet for a major leveraged corp oration . Some attempt is made at calculating the company’s historical data for its stock price but findings are inaccurate or not enough information is provided to draw conclusions about returns.. No attempts is made at calculating Beta value or estimated expected annual rates/return versus calculated historical rates/return nor costofdebt/taxrate/capitalizationratio/WACCoranyofthesevaluesindividuallyaremadeorincorrectlycalculatedifattempted.. 37pointsZero attempts are made at retrieving any financial statements nor calculations regarding company’s stock rates /return , Beta value ,expectedannualrates /returnversuscalculatedhistoricalrates /retu rnCostofDebt //TaxRate//CapitalizationRatio//WACCandnoneofthese values individually are made o r incorrectly Calculated if attempted .. 30points17Part 2Correctly interprets data into graphs depicting 5 different securities across industries over 20 years period with corresponding explanations including industry related detailsto allow reader to understand all information depicted in graph presented(APAformatandgrammararecorrect). Explanation displays evidence which explains why these securities were chosenoverotheroptionsavailableinthoseindustrieswithinthe20yearspan..31pointsDisplays appropriate understanding into various industries selecting fivesecuritiesasillustratedingraphsanddisplayappreciableeffortinterpretingdataover20yearsperiodbutmissesoutoncorrespondingdetailsexplanationswhytheseparticularsecuritieswerechosenorthieratioacrossindustriesismissedin explanation . 27pointsGraphssuccinctlyrepresentfivemajorsecuritiesfromdifferentindustryspanning20yearsbutincompletewithregardtocorrespondingexplanationsdetailingassessmentwhyspecificsecuritieswereselectedwhichwouldallowreader tounderstandfullcontextdepictedinthegraphs (APAmissingorsporadicallyused) 21pointsInsufficientinterpretationintofivemajorsecurityselectionsacrossindustriesnotproperly representedvalidatingthechoicespresentednorlegiblewrittenexplanationsjustifyingtheselookedforusingthismethodologywi th no APA citations found .. 18pointsmaxmax11APAFormatConsistently correct use throughout entire assignment overall containing six peer-reviewed references when needed full details on calculation formulas utilized properlyformattedscheduleofcontentstotalkthroughallreferencedmaterialsimagesandschematicscompareddefinitionigivetoonesconstructedbysourcemethodologyclarifiedexplainingsteps taken topreventconfusiononthetopicisincludeddisplaysemphasisonunderstanding theorybygivingclear exampleswheneverpossiblelastsixpeerreviewedin text citation referenced i nfinalbibliography 11pointswrittenwork done been formattedaccordingtoacademiastylerequirementsthoughmayberedundancies intextcitationsarepresent wasdoneeverytimeanothersourcewasutilized 9PointswrittenWorkfollowsacademicstylebutmisdominateredundancies lack one OR more core elementsofactuality minimalnumberin-textcitationfound 7PointscontentputtogetherwithoutStyle guidelines AND missingseveralelements offactuality Missing Two OR More in text citations finds occasional minor errors 5PointsPoor integrationofformat stylerulesandconstruction erroneous info lost way reasoning 0pointsmaxmax5Grammar &SpellingNo spelling mistakes detectedcontained no grammatical error fluid transitions between sentences helpguidereader through cohesive coherent narrativenoerrorsinsentencefragments conjunctions unnecessaryuses activevoicetoachievemaximumeffect minimalabusiveuse ofthesaurus accomplishing smoothly uniform writing 5Pointsminor Spelling Mistakes encountered contained minor grammatical errors breaks inexpositionoccasionallyfailsguidingreaderscohesivefullyformed narrative containedsomeerroneoussentences Fragments occasionally some uses abusing the usage ofthesaurushoweverwritingflows 4Pointscontains regularly misspelled words consistentsomewhat incoherent grammar disruptsin narration Passive voice occasionally some abusesofthesaurus 3Pointssparse readingsfilledwithfrequenterroneousspelling multiplegrammaticererrors largebreakinginexposition Hardreading ,language fragmented excessively obvioustharuserd TheSaurus inconsiderablemanner 2Points0Maxmax5

In order to answer this question, it is necessary to conduct research on the chosen securities. A thorough review of all 5 companies should be conducted in order to evaluate their financial performance over the past 20 years. This will require gathering and analyzing income statements, balance sheets, price data and other relevant information from each company’s website or other external sites such as Yahoo Finance or Bloomberg.

Once all of the data has been collected, annual rate of return can be calculated in order to determine the performance of these stocks. The average rate of return for each stock is then compared to a benchmark index (such as S&P 500) in order to estimate the beta value for each security. From this analysis, an expected rate of return can also be estimated by taking into account both the risk-free rate and beta values obtained from prior calculations. Additionally, further analysis should also be done on debt financing; looking at interest rates paid and capitalization ratios which would allow calculation of weighted cost of capital (WACC) for each company.

Finally, comments need to be made on overall findings from this exercise including any patterns observed in terms of risks associated with different industries and how those affect investors’ expectations when making decisions about which security/stock they should invest in. All claims made must also have academic sources cited using APA 6th edition formatting guidelines where appropriate .