Finance
1). Go to Yahoo! Finance, Mergent or other source to retrieve financial data (Income Statement, Balance Sheet and Statement of Cash Flows) for a company of your choice to analyze.
2). Examine the ratios for your company’s Liquidity, Asset Management, Debt Management and Profitability/Returns.
3). Calculate the Cost of Equity, using the Beta from Yahoo!, then apply Beta to the Equity Risk Premium and add the Risk-Free Rate for the Cost of Equity.
4). Compare your company’s Cost of Equity (from above) to its Return on Equity (from 2 above) and determine the Spread between them. What does this Spread tell you?
In three to five pages