Task 1 – Assess Loan Options 50 36 Calculate the EAR for two banks, make a recommendation to the best option and compute payments for the selected loan. Task 2 – Evaluate Competitor’s Stock 40 28 Calculate the value of the stock using the dividend growth model. Address the impact of changes in certain variable conditions on market prices. Task 3 – Bond Valuation 50 36 Determine the coupon rate of bonds and compare it to the market price. Explain factors affecting bond risk. Describe some covenants associated with bonds. PART 2Category Points % Description Task 4 – Capital Budgeting 75 50 Compute the NPV and IRR of a project and make recommendations based on calculations. Analyze factors affecting the capital budgeting process. Describe project risks and analysis. Task 5 – Cost of Capital 75 50 Calculate the WACC and describe methods for computing the cost of capital. Explain the appropriate use of the WACC. Compute the NPV of a project based on the WACC.