Part 1: Beta
Visit the following web site or other websites:
https://finance.yahoo.com/?guccounter=1&guce_referrer=aHR0cHM6Ly9jb3Vyc2VzLmNhbXBiZWxsc3ZpbGxlLmVkdS8&guce_referrer_sig=AQAAADYGCYI-QQcWpc0a6rPNlrbyjC7OP9-rXTIeB9UUNhxHg6EByxSkwQIcIDPv3LjJyzhAju6IgrF44yMlo9a1Bx4zhV6sh7–ORY5_19Lc5j7eDtYu3ftrxS9C-jYReVKdjsgjFu3csg96x_8Js8WJnPB9gH2VtC4wd6aNDMIyraO
Yahoo Finance
1. Search for the beta of your company (Group Project)
2. In addition, find the beta of 3 different companies within the same industry as your company (Group Project).
3. Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
4. Why do you think the beta of your company (individual project) and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
Part 2: Capital Budgeting
Capital Budgeting Decision Methods
CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
¢ Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
¢ Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
¢ Why might ethical companies benefit from a lower cost of capital than less ethical companies?
