Complete sections 5 and 6 on the company Apple INC, very small and easy project please see attachments, ONLY PARTS 5-6!!
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5. Other Areas of Financial Analysis
Evaluate other areas of financial analysis: capital spending, Beta values, credit rating service valuations (if possible), bond rating valuations (if possible), etc.
Capital Spending
Find the data for capital spending. How much did THE COMPANY spend on research, development, and engineering in the most recent year? How did this compare with the previous year?
Beta Values
Find the current beta for the company and its major competitor in the Internet. Present beta results as the table in your project. Write about 0.5 page of analysis of beta values that you found. Compare the beta values against the main competitor. In your report please answer the question: How risky the company is?
Credit Rating Service Valuations (if possible)
Bond Rating Valuations (if possible)
Etc.?
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6. Stock Performance
Market Ratios
Present the market ratios as the table(s) in your project.
Write about 1 page of analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor. In your report please answer the question: Are the common stockholders receiving an adequate return on their investment?
Historical Stock Prices
Collect and evaluate the data about stock prices of the assigned companies for the last one year for the company and its major competitor.
Create the chart(s) using the stock price chart tools on the websites or Excel. Present the chart(s) in your project.
Write about 0.5 page of analysis the historic stock prices trend for the last year.
Capital Asset Pricing Model (CAPM) Security Market Line (Note that you will need the risk-free rate and the market return. Show this information in your project.)
To get the current yield on 10-year Treasury securities go to Finance! Yahoo’s at www.finance.yahoo.com -click on Market Data – Bonds. You will use the current yield on 10-year Treasury securities as the risk-free rate to estimate the required rate of return on stocks. Show this information in your project.
To get the market return go to money.cnn.com , Click on Market, then click on S&P 500.You will use 52-weeks change for S&P500 listed as “Year-to-Date†percentage change. Show this information in your project.
Calculate the required return on THE COMPANY stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work.
Find on the Internet the 52-weeks change of the stock price. Compare the required return on the stock calculated using CAPM against its historical return over the last 52 weeks, found on the Internet. Is there a difference between these returns? Is THE COMPANY’S stock overvalued, undervalued, or properly valued? Why? Explain your answer.ÂÂ
