My company is Harley Davidson. These are the instructions:

This section should include background on the company that has been chosen.

IV.          Pages showing equations with data and brief description

There is no page length given for this as it can vary greatly. This section is to be divided up based on the topics. In each section, you must show and explain the equations that are used. In addition, you are to draw any conclusions on the company you can from this data. Please note that detailed worksheets showing all of the calculations for this section are to be included in an appendix.

·      Cost of Equity (Common Stock)

o  Beta  from Regression and two Betas from analysts  

o  Beta Chosen for CAPM and why

o  Capital Assets Pricing Model (include how determined RF and[ RM  or (RM - RF)]

o  Discounted Cash Flow (DCF) (only if dividends - include how determined)

o  Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)

·      Cost of Preferred Stock

·      Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)

·      Market Value of Debt (will have calculated above, but will need to add any long   term leases from balance sheet to get total market value of debt)

·      Market Value of Equity

·      Market Value of Preferred Stock

·      Value of Firm

·       Firm's Tax Rate (explain how determined)

·      Weight for Equity

·      Weight for Preferred Stock

·      Weight for Debt

·      WACC (Weighted Average Cost of Capital)

V.            Assumptions

Including but not limited to RF , RM,  RPM (which =Rm - RF),growth rate of dividends. This page should have a brief description of how you came up with the estimates with spreadsheets, etc. to be put in the appendix.