Finance-AW434 Online Services


Corporation Finance
• Complete this assignment using a Bloomberg terminal in the Bloomberg Lab in the Albert D. Cohen Management Library.
• Attach a printout from Bloomberg for every piece of information you use in this assignment.

• This homework assignment is worth 10% of your final grade.
• This is group work. The maximum number of group members is four.

• Your typed, hard-copy solution is due at the beginning of the last class (late submissions will not be accepted). An electronic version should also be uploaded on D2L prior to submission of hard copy.
• Be sure to use Canadian dollars ($CAD) throughout the assignment.

Canadian National Railway (ticker: CNR) is currently working on a three‐year deal with a new client to provide shipping services. The management team believes that at the end of the first year of the project they could earn net operating cash flow of $1 million, $2 million the following year, and $3 million in the last year. The average corporate tax rate paid by CNR is 35%. Use past information to predict the cost of capital for this project.

1) Find the amount of long‐term debt (D) as of June 30th, 2014, the end of Q2 2014. Publicly traded companies are required to produce annual accounting reports for OSC detailing the financial operations of the past year. On the balance sheet, each company is required to list the value of long‐term debt. (Note: Most of the tables in this report are created by accountants. Hence, this report provides book values. But, the book value of debt and the market value of debt are roughly equal.)

2) Find the future cost of debt (i.e. Ask Yield To Maturity), rD, as of October 2nd, 2014 for debt that matures in 2019. Note that the provided yield is an effective semi-annual rate. You should compute the effective annual cost of debt.

3) Find the market capitalization (i.e. the market value of common equity, E) as of June 30th, 2014, the end of Q2 2014. Look at the Enterprise Value tab under the Key Stats and Financial Analysis (FA) Menu on Bloomberg.
You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


4) Estimate the future cost of equity (rE) using the Dividend Growth Model.

a) Find the most recent cash dividend (D0).
b) Find three year dividend growth rate (i.e. the growth rate over 3 years, calculated as the annualized rate of growth between the current year’s dividend per share and the dividend per share 3 years prior). You can find this information using the DVD menu. Be sure to convert the three year growth rate to an effective quarterly rate dividend growth rate (g).

c) Find the stock price for CNR (P0), of September 30th, 2014, the end of Q3 2014.
d) Using the information above to calculate the quarterly cost of equity using the dividend growth model.
e) Use the quarterly cost of equity to find the effective annual cost of equity.

5) What do you predict CNR’s weighted average cost of capital will be? (Assume that the project is financed according to the firm’s capital structure as of June 30th, 2014.)
6) If the project requires an initial investment (upfront cost) of $5 million dollars, would you advise CNR to take the project? Why?
product code: Finance-AW434
Looking for best Finance-AW434 online ,please click here