Finance assignment. To complete this assignment you must have a solid background in Financial Imvestments, risk management, etc. A table should have accompanying text to explain the table and answer the associated questions. Analyze Praxair Inc. The ticker for Praxair Inc. is PX and the CIK is 0000884905. For this analysis you will need to choose three comparable companies. Which three companies did you choose as comparables? Why did you choose those three companies? Are they in the same or a similar industry? How close are they in terms market capitalization to Praxair? How close are they in terms of sales? What was the source of the data you used to choose the comparable companies? Relative to the comparable companies, what risk factors are common to all the companies? What risk factors are relatively unique to Praxair? What was the data source you used to determine the risk factors? How much was the CEO of Praxair paid in 2014, i.e. total compensation? How does this compare to the CEOs of Praxairs comparables? Did the CEO of Praxair receive any notable perquisites? What was the source of the compensation data? What is the current P/E ratio of Praxair and how does it compare to the comparable companies? What is the implied value of Praxair using a P/E ratio valuation methodology using the comparable companies average P/E ratio as the benchmark P/E ratio? Praxair released fiscal year 2015 earnings on January 29, 2016 and reported EPS of $5.35. Compare the estimated stock price to the closing price of the stock on 12/31/2015. Repeat the same analysis using the Price/Sales ratio. Sales in fiscal year 2015 were $10,776,000,000. You will have to find the number of shares of stock outstanding. What were the P/E ratios of Praxair for each year between 2010 and 2014? What was the average P/E ratio? What is the implied value of Praxair using a P/E ratio valuation methodology that uses Praxairs average historical P/E ratio as the benchmark P/E ratio? Once again, Praxair released fiscal year 2015 earnings on January 29, 2016 and reported EPS of $5.35. Compare the estimated stock price to the closing price of the stock on 12/31/2015. What is the CAPM beta when you use daily returns over the years 2011 to 2015? What is the CAPM beta when you use daily returns for each year between 2011 and 2015, i.e. calculate beta for each year using one year of daily returns. Is the CAPM beta estimate stable? What is the CAPM beta when you use monthly returns over the years 2011 to 2015? Assume a market risk premium of 6%, what is the expected cost of equity capital for Praxair using beta estimated with daily returns over five years, i.e. 2011 to 2015? Separately, what is the expected cost of equity capital for Praxair using beta estimated with monthly returns over five year, i.e. 2011 to 2015? If you need help estimating CAPM I have created a YouTube video walking you through the process: Link What was the ROE of Praxair in each year between 2010 and 2014? What was the plowback ratio in each year between 2010 and 2014? What is the implied growth rate for each year? What is the average growth rate? Using the aggregate dividend paid over 2015, what is the value of Praxairs stock as estimated by the Gordon growth model? Use CAPM to determine the discount rate, with a 6 percent market risk premium. What is the value of Praxairs stock as estimated by the Gordon growth model with the discount rate calculated via CAPM with beta calculated with five years (2011 to 2015) of daily returns? What is the value of Praxairs stock as estimated by the Gordon growth model with the discount rate calculated via CAPM with beta calculated with five years (2011 to 2015) of monthly returns?