The memo can be no longer than one, single-spaced standard page. Within that limit, you should

include the following:

o For the cost of capital: an explanation of what numbers you used to calculate the

cost of capital

o For dividends: what dividends has the firm paid over the past 2 years? At the

time each dividend was paid, what was the dividend as a fraction of net income

and as a fraction of the stock price?

o Where did you obtain each of the numbers, for cost of capital, dividends, and

capital structure

o A discussion of the leverage, Beta, final cost of capital, and dividends. Is each of

these statistics similar to your expectations for the firm you chose (given the

firm’s industry, etc.)? If so, please explain why you would expect to find such

levels for this firm. If not, please explain why you expected something different

and why you find your results surprising

The important part is that i need to know WACC, the discussion f the leverage, Beta, final cost of capital, and dividends and whether it meets your expection.