FIN 470
The purpose of this assignment is to familiarize the student with the different sources of funds that are commonly used in a publicly traded companies in the Saudi Stock Market and to relate it to the agency theory.
Required:
* Choose any two stocks from the same sector in the Saudi traded stock market except banks or insurance co. and perform the following:
1.calculate the commonly known basic financial ratios analysis. ( all catagories).
2-Calculate the weighted average cost of capital (WACC) for each stock using recent data.
- Compare your calculated WACC to the average of the chosen companies/sector.
- Interpret your findings where you compare each stock with the sector within the context of Debt- to- Equity ratios and leverage benefits to shareholders.
