Part 1: Beta. Company: UPS 200 words+2 references
Visit the following web site or other websites:
1. Search for the beta of your company (Group Project)
2. In addition, find the beta of 3 different companies within the same industry as your company (Group Project).
3. Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
4. Why do you think the beta of your company (individual project) and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
Part 2: Capital Budgeting
Capital Budgeting Techniques
To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples. 100 words + 1 reference
• Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not? 100 words + 1 reference
• Why might ethical companies benefit from a lower cost of capital than less ethical companies? 100 words + 1 reference.