Part 1

Search Yahoo Finance, or any other credible source to retrieve the most recent income statement and balance sheet for a major leveraged corporation.

(a) Provide these statements in proper format and include a screenshot of the data.

(b) Retrieve the data on the company’s historical data and calculate annual rate of return by using adjusted closing prices for the past 20 years.

(c) Using the data on the company’s stock rate of return and the index’s rate of return, estimate the beta of the corporation. Compare this value with the value stated by the source.

(d) Retrieve the risk-free rate of return as the annual interest rate of US treasuries. Based on these values, estimate the expected annual rate of return of the corporation’s security. Compare your estimate with the expected rate of return as evaluated based on your data in part b.

(e)Using the financial statements mentioned above, estimate the annual rate of interest paid by the corporation (cost of debt).

Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found, estimate the annual weighted cost of capital (WACC) of the corporation.

Part 2

This part of the assignment is in preparation for CLA 2. Choose five (5) major securities from different industries, one of which can be the one you chose in part 1 of the question.

Retrieve the data on the companies’ historical data and calculate the annual rate of return for the past 20 years for each security.

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words.[supanova_question]

## Working Capital Management

What factors does a financial manager need to consider when determining a suitable level of working capital for a corporation? Explain why you consider your chosen factors are important.

Why is the hedging principle important for helping firms based in KSA to manage their liquidity? How is this related to Saudi Vision 2030?

Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

done

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## exercise 4

Finance Assignment Help Students are required to address three parts in the main body of this essay and content details are as blow: 1. Summarise the history of the exchange rate regime of a particular country; 2. Discuss three relationships that describe the behaviour of exchange rate (CIP, PPP, IFE); 3. Estimate the PPP between a particular country and the US. (Students need to collect monthly data for not less than 5 years to complete this part of the essay

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## This is a complete written report of your portfolio formation in

This is a complete written report of your portfolio formation in a Word file. Your historical data and relevant derived values in tables can be pasted from your previous calculations in the Excel file. Please provide explanations of all calculations and the justifications in Word format. Also, make sure to paste all underlying Excel formulae that you used for calculations in the Word file.

1. Provide once again the data that you presented in answering part 2 of Professional Assignment 2.

2. Calculate the mean, variance, and the standard deviation of each security’s annual rate of return.

3. Calculate the correlation coefficient between every possible pair of securities’ annual rates of return.

4. Choose percentages of your initial investment that you want to allocate amongst the five (5) securities (weights in the portfolio).

1. Create embedded formulae which generate statistical properties of the portfolio upon insertion of the weights.

2. Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio.

5. Find the combination of the weights that minimizes CV of the portfolio.

1. How does the CV of the optimal portfolio compare with the CVs of its constituents?

2. What is the expected rate of return and standard deviation of the rate of return of the portfolio?

6. Choose different values within the range of the standard deviation of the portfolio, and for each chosen value, locate the corresponding point on the efficient frontier by finding the weights that maximize the expected rate of return of the portfolio.

1. Subsequently, construct the efficient frontier of your portfolio.

7. Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal.

1. What is the distribution of the return of the portfolio 20 years after its formation?

2. Provide the graph of the distribution of the return of the portfolio.

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary.

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