AT&T Inc $20.60 Previous Close 20.66 Market Cap 147.475B Open 20.63 Beta (5Y Monthly) 0.69 Bid 20.58 x 21500 PE Ratio (TTM) 8.62 Ask 20.62 x 3200 EPS (TTM) 2.39 Day's Range 20.45 - 20.86 Earnings Date Jul 21, 2022 52 Week Rage 20.45 - 20.86 Forward Dividend & Yield 1.11 (5.34%) Volume 25,160,355 Ex-Dividend Rate Jul 08, 2022 Avg Volume 45,522,241 1y Target Est 23.31 1) Assuming the risk free rate is 3% and the market risk premium is 6%, what does the CAPm say the cost of equity is for AT&T? Choose the closest. a) 7.1% b) 9.0% c) 9.9% d) 17.3% 2) ATT&T has total debt of $200 Billion and Cash of $5 Billion. Bason that what is it's Enterprise Value? Choose the closest. a) $342.475 Billion b) $352.475 Billion c) $147.475 Billion d) $152.475 Billion 3) AT&T is a profitable Company. On it's $200 Billion of debt, it pays an interest rate of 5%. Assuming its tax rate is 20%, what is it's effective cost of debt? a) 15% b) 6% c) 5% d) 4%
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
AT&T Inc $20.60
| Previous Close 20.66 | Market Cap 147.475B |
| Open 20.63 | Beta (5Y Monthly) 0.69 |
| Bid 20.58 x 21500 | PE Ratio (TTM) 8.62 |
| Ask 20.62 x 3200 | EPS (TTM) 2.39 |
| Day's Range 20.45 - 20.86 | Earnings Date Jul 21, 2022 |
| 52 Week Rage 20.45 - 20.86 | Forward Dividend & Yield 1.11 (5.34%) |
| Volume 25,160,355 | Ex- |
| Avg Volume 45,522,241 | 1y Target Est 23.31 |
1) Assuming the risk free rate is 3% and the market risk premium is 6%, what does the CAPm say the
a) 7.1%
b) 9.0%
c) 9.9%
d) 17.3%
2) ATT&T has total debt of $200 Billion and Cash of $5 Billion. Bason that what is it's Enterprise Value? Choose the closest.
a) $342.475 Billion
b) $352.475 Billion
c) $147.475 Billion
d) $152.475 Billion
3) AT&T is a profitable Company. On it's $200 Billion of debt, it pays an interest rate of 5%. Assuming its tax rate is 20%, what is it's effective cost of debt?
a) 15%
b) 6%
c) 5%
d) 4%
4) If AT&T is expected to grow it's dividend by 1% year after paying $1.11 next year and has a 6% cost of equity capital, what does the Constant Dividend Growth Model say its stock price should be. Choose the closest.
a) $23.80
b) $22.20
c) $15.86
d) $18.50
5) How many shares outstanding does AT&T have? Choose the closest.
a) 27.284 Million
b) 45.522 Million
c) 7.159 Billion
d) 147.475 Billion
6) Comcast is considered a comparable Company to AT&T. It has a P/E ratio of 12.78. Based on that alon, which looks to be a better buy?
a) AT&T
b) Comcast
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