You recently completed your education in Business Administration. You are now working at PPL Corporation, at their corporate headquarters, in Allentown, PA.

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2.43. Mini-Case:

 You recently completed your education in Business Administration. You are now working at PPL Corporation, at their corporate headquarters, in Allentown, PA. Your first assignment is to estimate the weighted average cost of capital for the company. You can start by studying the annual report of PPL Corporation available at their website. You can use public information about the company, available at various sources, such as Yahoo Finance. You should identify the source of your data. In effect, you have to find the current values of the following quantities for the corporation. If you are unable to find a number precisely, you will have to estimate it. 

1. Income tax rate 

2. Market value of debt 

3. Market value of equity 

4. Cost of debt 

5. Cost of equity


3.24. Mini-Case: The information about Microsoft, given earlier in this chapter, is quite old. You have just found a good position in the finance department at Microsoft, at their headquarters office in Redmond, WA. Your first assignment is to find the current values of the financial ratios. You should focus on the ratios related to the short-term financial management of the company. Do you find any significant changes in these values, compared to the numbers for 2001? Comment on the significance of these changes



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