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

RUBRIC:

Exactly extracts risk-free US Treasuries Interest Rate, calculates expected annual return rate, and compares it with historical calculated rate of return for part b.

Calculates corporation interest (cost of debt), capitalization ratio and tax rate correctly, then analyzes the data to determine how they compare.

53 PointsRetrieves most current income and balance sheets for major leveraged corporations in the correct format.

Clear explanation on how to calculate an annual rate for return using adjusted closing price.

46 PointsRetrieves an incomplete but accurate income statement and balance sheet of a large leveraged corporation. 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

This question can only be answered if you do thorough research about the securities. It is important to review all five companies in detail. This will allow you to assess their financial performance for the past twenty 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.

After all data is collected, the annual rate of returns can be calculated to calculate the stock’s performance. 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. The expected rate of return for each stock can be calculated by combining the beta value and risk-free rates from earlier calculations. Additional analysis must be made on debt financing. These should include looking at the capitalization ratios and interest rates, which will allow you to calculate your weighted cost capital (WACC).

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 should be cited with APA 6th edition format guidelines.