FIN 402 MASTER 1 Predictable World / fin402master.com FIN 402 MASTER 1 Predictable World / fin402master. | Page 31

FIN 402 Week 2 weekly Problem Set
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1. (2 point) Calculate the expected return of the following stocks
using CAPM. You can use internet websites to get Beta figures, such
as Yahoo! Finance, Google Finance, MSN Money, Marketwatch, etc.
Use 4% as the risk free rate and 6% as the risk premium.
a. Proctor & Gamble (PG)
b. Microsoft (MSFT)
c. Macy’s (M)
d. JP Morgan Chase (JPM)
e. Southern Company (SO)
2. (2 points) Look up Microsoft’s financials on the internet. Sites
to use include those listed above as well as the SEC’s website –
www.sec.gov. Select two ratios from each of the following categories
(8 calculations in total) and show your calculations. Be sure to show
the formula and your calculations. No points will be given if work is
not shown even if you get the correct answer.
Categories:
a. Profitability ratios
b. Asset-utilization ratios
c. Liquidity ratios
d. Debt ratios