f Assignment 2: Quantitative Exercises and Final Project 3: Government Securities Part One: Quantitative Exercises Barbow Enterprises, Inc., is...

Required:

Calculate Barbow’s after-tax weighted average cost of capital, using the data in the balance sheet above.

Deliverable:

By Saturday, February 6, 2016, submit the completed assignment to the W4: Assignment 2 Dropbox. Use a Microsoft Excel spreadsheet that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

Name your document SU_FIN2030_W4_A2_part1_LastName_FirstInitial.

Part Two: Final Project 3: Government Securities

In this part of your Final Project, you will research and analyze current information (that is, within the past two months) on government securities.

Step 1: Go to a financial Web site to do your research. The following are three suggested sites, but you may use others. Be sure to cite your sources!

finance.yahoo.com
http://www.google.com/finance
moneycentral.msn.com

Step 2: Research current information (within the last two months) on the yields and maturity for:

U.S. treasuries
Municipal bonds
Corporate bonds

Required:

Discuss what the pure expectations theory would imply about the yield curve.
Compare and contrast the yields and maturities for each of the securities.
Discuss which you would hold and why relative to interest rate risk.

Deliverables:

By Saturday, February 6, 2016, submit your responses to this Final Project assignment to the W4: Assignment 2 Dropbox. Your submission may be in a 3–6 page Microsoft Word or Excel document. Include a Microsoft Excel document that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.

Inputs for WACC Calculation:Risk free rate (%)Yield-to-Maturity of debt (%) 12.00%11.50% Equity risk premium (%)Beta of equity 7.50%1.66 Corporate tax rate (%) 30% Common shares (MM)Share...