“what did i miss”
Professor Comments: need to work on them, also it you find something need work “work on it”
- Debt to capitalization at 99%? This means the firm is 99% debt and only 1% equity. You may want to check your numbers again.
- Ratios not explained or calculations shown.
- Issues with bond pricing. Bonds are quoted in 100s and priced in 1000s. If you go to FINRA and see a bond has “last trade price” of 109.50, what this really means is that the bond is trading at 109.5% of par ($1,000), or the bond is priced at $1,095.00. You should also check you YTM calculations. Make sure your N is the number of periods from today until maturity. (Ex. If bond matures in 12/10/2024 and today is 12/10/2016 there is 8 years, or 16 semi-annual periods, until maturity; thus N = 16).
- Good job on the explanation for calculation of cost of equity.
- Check calculations on Dividend Growth Model – D0 should be per shareholder. Also check E/V and D/V weights. E = share price x # shares; D = bond price x # bonds (given); and V = D+E.
- Because the project lasts beyond five years, the change in NWC should be zero for year 5.
in File:
Carnival project 1 “xlsx” and Fin 310,12.”docx”, what you will work on….
where did i have all my number and where did i find them from: ” this is what you need “
1-Instructions to access SEC EDGAR
2- Instructions for Morningstar FINRA
3-Instructions for Yahoo Finance (stock data)
make suer If you change something from Excel you need to check paper and change it Also
