SOUTHWEST AIRLINES
1. Calculate the investor’s required rate‑of‑return on the common stock & find the investor’s required rate‑of‑return on one of the company’s bond issues.
2. Provide a conclusion as to whether the company currently is overvalued, undervalued, or fairly valued.
3. Make a commendation as to buy, hold, or sell the stock. Provide the rationale for your recommendation.
