Essentials of Investments‚ by Bodie‚ Kane and Marcus 8th Edition‚ Teaching Notes Chapter 01 - Investments: Background and Issues CHAPTER ONE INVESTMENTS: BACKGROUND AND ISSUES CHAPTER OVERVIEW The purpose of this book is to a) help students in their own investing and b) pursue a career in the investments industry. To help accomplish these goals Part 1 of the text (Chapters 1through 4) introduces students to the different investment types‚ the markets in which the securities trade
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(WACC). In our analysis‚ we examine why WACC is important in decision making and we show how WACC for Nike Inc. is calculated correctly. Also‚ we calculate the company’s cost of equity using three different models: the Capital Asset Pricing Model (CAPM)‚ the Dividend Discount Model (DDM) and the Earnings Capitalization Model (EPS/ Price)‚ we analyze their advantages and disadvantages and finally we conclude whether or not an investment in Nike is recommended. Our analysis suggests that Nike Inc
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be informed of its advantages. This topic sparked an interest because in personal experience‚ hands-on learning is both extremely effective‚ and very engaging. Literature Review “The Apprenticeship System in Canada: Trends and Issues” By Andrew Sharpe and James Gibson. This was a research report found on the UWO library site. It takes an in depth look into many aspects of apprenticeships in Canada. It goes into detail on perspectives of both the employee and government‚ on their views of the topic
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did you measure the cost of debt for each division? Should the debt cost differ across divisions? Why? c. How did you measure the beta of each division? Case Hints and Suggestions The primary objective of this case is to show students how the CAPM is used to compute the cost of capital. Students learn to calculate beta based on comparable companies and to lever betas to adjust for capital structure. Students are asked to determine the appropriate risk-less rate and market risk premium. This
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C/2d. Lt. Insert Name ‚ CAP Cadet Advisor Insert Squadron Date Staff Duty Analysis Achievement 9 – Flight Commander Part A: Overview of Requirements CAP Publications Applicable to Cadet Flight Commander Regulations No CAP regulations are listed for this OPR Pamphlets No CAP pamphlets are listed for this OPR Forms No CAP forms are listed for this OPR Suspense’s Required of Flight Commander The Flight Commander has no suspense’s of his or her own‚ but must manage
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Nike Inc. Cost of Captial Michael Tjandra Anna Ellie Du Background of Nike and North - Point Nike North-Point Revenue $9 Billion from 1997 Mutual Fund Management Firm Net income fallen from $800 Million to $580 Million Invests in fortune 500 companies Market Share fallen from 48% (1997) to 42% (2000) At end of June 2001‚ fund’s year to date returns tops at 6.4% Long term revenue targeted at 8-10% Funds performed extremely well Earning growth is targeted at 15% The stock market in decline
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premium because it is the portion of the return premium that is independent of market performance. The Sharpe ratio indicates that a higher alpha makes a security more desirable. Alpha‚ the numerator of the Sharpe ratio‚ is a fixed number that is not affected by the standard deviation of returns‚ the denominator of the Sharpe ratio. Hence‚ an increase in alpha increases the Sharpe ratio. Since the portfolio alpha is the portfolio-weighted average of the securities’ alphas‚ then‚ holding
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PRACTICE_FINAL EXAM PORTFOLIO MANAGEMENT Winter 2013 CHAPTER 19—BOND PORTFOLIO MANAGEMENT STRATEGIES MULTIPLE CHOICE 1. Which of the following is a passive bond portfolio strategy? a. Indexing b. Buy-and-Hold c. Classical immunization d. Choices a and b e. None of the above ANS: D PTS: 1 OBJ: Multiple Choice 3. Which of the following is a matched funding technique? a. Classical immunization b. Contingent immunization c. Bond swaps d. Valuation analysis e. Interest rate anticipation ANS: A PTS:
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PaperThis assignment needs to consist of a portfolio analysis in a Microsoft Word document that is not to exceed three pages. You must also include your portfolio analysis in either Word or Excel. You must show how you calculated the answers. 1. Select four stocks from finance.yahoo.com‚ google.finance.com‚ or moneycentral.msn.com. One should be a clothing manufacturer‚ one should be a retailer‚ one should be an automobile manufacturer‚ and one should be a restaurant or food producer. 2. Obtain
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Should I Pursue a Project Management Certification? CAPM® | PMP® | PgMP® | PMI-ACP SM | PMI-RMP® | PMI-SP® www.PMI.org Skilled project managers are in demand around the world. A globally recognized project management certification shows employers that you have the knowledge‚ experience and education to effectively contribute to project team success. The four-step process outlined here will show you the pathway to applying for‚ earning and maintaining a PMI certification—an important investment
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