Corporate finance

The following questions should be answered using Excel. You should submit, via Canvas, a well
formatted Excel file containing the various spreadsheets that contain your answers. The presentation of
your answers should make your procedures/methods easy to follow and should present the inputs and
equations used in your calculations.
1. (15 points) Based on the annual income statements and balance sheets of Costco Wholesale
Corporation in 2018 and 2019 (ticker symbol: COST) found on, calculate the
annual rate of growth (% change) in revenue, gross profit, operating income, net income, and total
assets. Additionally, calculate the Costco’s gross margin (gross profit/revenue), operating margin
(operating profit/revenue), profit margin (net income/revenue), asset turnover ratio (revenue/assets),
operating return on assets (OROA = operating income/assets), and return on assets (ROA = net
income/assets) for fiscal year 2018 and 2019.
Based on your calculations: What do we learn about
Costco’s ability to control their expenses in 2019 compared to 2018? What do we learn about Costco’s
ability to generate revenue from their assets in 2019 compared to 2018? What do we learn about
Costco’s ability to generate profits from their assets in 2019 compared to 2018? (Maximum of two
well-written sentences per question).
2. (5 points) Calculate the difference between the present value of $200 per year cash payments for the
next 40 years and the present value of $200 per year cash payments in perpetuity. Assume in either
case, the first payment occurs one year from today and that the appropriate discount rate is 8%/year. The
difference in the present value of these two streams of future cash payments that you calculated equals
the present value of cash payments over what period of time?
3. (5 points) What is the present value of the following series of cash payments: $8,000 per year for
four consecutive years starting one year from today, followed by annual cash payments that increase by
2% per year in perpetuity (i.e. cash payment in year 5 is $8,000*1.02, cash payment in year 6 is
2, etc.)? Assume the appropriate discount rate is 5%/year.
4. (5 points) Use
Goal Seek in Excel, to solve for the yield to maturity (market rate of return) on a
corporate bond with a coupon rate of 4% per year, a maturity of 20 years, and a market value (price) of
$1,210. Assume semi-annual coupon payments and a maturity payment of $1,000 per bond.
5. (15 points) Use the dividend discount model to value a share of Toyota’s stock (ticker symbol: TM)
as of December 31, 2020. In your application of this model, use the data provided on the most recent
Toyota Value Line report (history of their annual dividend payments, forecasts of future annual dividend
payments, past and forecasted growth rates in dividends, and Value Line’s estimate of Toyota’s equity
beta). Given all of the dividend data (historic and forecasted) presented in the Value Line report,
explain, in one sentence, the logic you used to estimate the expected future constant growth rate in
dividends in perpetuity (g).
Since Toyota is a non-US firm, dividends per share on Value Line are referred to as Gross Dividends Declared per ADR. For
directions on how to access Value Line Reports via the SU website, see the Website Instructions document on Canvas.
6. (15 points) Estimate Amazon’s (ticker symbol: AMZN) weighted average cost of capital (WACC).
For each input used in your estimation of Amazon’s WACC, explain what data was retrieved from
what source on what date.
See my estimation of Weyerhaeuser’s WACC (on Canvas) as a guide as
well as the document entitled Website Instructions also available on Canvas.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
At Custom Writing, we believe in exemplary services that are fully geared toward customer satisfaction. That is why we don’t shy away from giving you the following guarantees;

Money-back guarantee

Trusting us with your work is the best decision you have made, our pleasure lies in seeing you satisfied at 100%. If in the rear chance it happens that you are not satisfied, then know that we will equally not be satisfied. But worry not, our 30 days- Money back guarantee is all you need and that is what we promise you..

Read more

Zero-plagiarism guarantee

We utilize profoundly equipped and gifted writers who produce unique papers liberated from any form of plagiarism. To guarantee this, we run all papers finished by our scholars through a Plagiarism checker to ensure uniqueness and originality. In any case, on the off chance that you have vulnerabilities about the originality or falsification of any paper we have finished and conveyed to you, please get in touch with us straight away. We will quickly investigate, and if the paper is seen as counterfeited, we will take suitable actions including but not limited to, revising the paper for free and in extreme cases we will activate the money back guarantee.

Read more

Free-revision policy

We have an obligation deliver great and specially composed assignments. Our revision strategy endeavors to ensure total client satisfaction, comfort, and a genuine feelings of serenity. We make minor updates and corrections to the underlying request as part of our continuous assistance. However, revisions should just incorporate changes and alterations that were not effectively met, in the underlying request and that are inside the rules as per the current request structure..

Read more

Privacy policy

Our client's Data is an Integral part of our business but clearly, we are not in the business of offering our clients' very own data to others. We realize that you care how your online data is utilized and shared, we equally value your trust that we will do so cautiously and sensibly. We Promise to ensure the security of your own data during transmission by utilizing encryption conventions and programming. Likewise assist us with securing your information by not sharing your passwords and usernames.

Read more

Fair-cooperation guarantee

In submitting a request with us, you consent to the services we give. We will strive to take the necessary steps to convey a far reaching paper according to your prerequisites. Equally we depend on your cooperation to guarantee that we convey on this order.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages