Part 1: Beta
1.
Search for the beta of Verizon Communications
2.
In addition, find the beta of 3 different companies within the same industry as Verizon Communications
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 Verizon Communications 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
Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
https://www.youtube.com/watch?v=hfZ6lznPf2U
https://www.scribd.com/doc/37253036/Capital-Budgeting-Principles-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.
• 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?
• Why might ethical companies benefit from a lower cost of capital than less ethical companies?

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