Description
Finance/Stock Analysis
Deliverable Length: (1) Excel document, (1-2 pages) Word Document (that include explanations and 2-column Table)
Citations: APA
Review the company, Canopy Growth Corporation (CGC), to perform the following:
1. Compare the Generally Accepted Accounting Principles (GAAP) and economic balance sheets.
a. Using the Generally Accepted Accounting Principles (GAAP) balance sheet for the most recent year, for each item, determine where it should be classified in the economic balance sheet (core operations, non-operating net assets, debt claims, other capital claims, or equity claims).
b. Create a 2-column table in Word to show the corresponding accounts.
c. Determine whether any other items should appear on the economic balance sheet that are not on the GAAP balance sheet.
d. Determine if information exists in the annual report or elsewhere that can assist in valuing the non-operating net assets, debt, and other capital claims.
2. Estimate the cost of equity, weighted average cost of capital (WACC), and the unlevered cost of equity.
a. Create an Excel document, be sure to label each calculation clearly.
b. Find the beta for your company using the website: Yahoo Finance (https://finance.yahoo.com/)
c. Estimate your company’s cost of equity.
d. Estimate your company’s weighted average cost of capital.