CITIC TOWER II: THE REAL OPTION CASE STUDY SUMMARY Scenario * Undeveloped prime waterfront property on Victoria Harbor was bought 6 months ago at public auction * Owner now wants to sell the land and is available to Citic Pacific Limited on a first-choice basis through an intermediary * Larry Yung (Chairman) thought they could acquire the site and turn it into another Grade-A office building “Citic Tower II” * Asking price of the land was $1 billion * Net present value of property
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beta of 1.5. This statement is inconsistent with the CAPM but not necessarily with efficient capital markets. Why? Beta might not be the correct specification for risk. Small firms might be riskier due to other sources of risk factors (i.e. volatility risk‚ liquidity risk‚ business cycle risk‚ etc.)‚ therefore investors might require higher returns for small stocks taking into account those risk factors. 4) Describe the three forms of the efficient-market hypothesis. Weak: The market price
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Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Septtember 2013 Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Introduction Over the 46 years ending December 2012‚ Warren Buffett (Berkshire Hathaway) has achieved a compound‚ after-tax‚ rate of return in excess of 20% p.a. Such consistent‚ long term‚ out performance might be viewed as incompatible with modern finance theory. This essay discusses the Berkshire Hathaway phenomenon in
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modern macroeconomics. Furthermore‚ this course will take a comprehensive look at the interplay between financial systems and macroeconomic performance. Particularly‚ it will look into the role financial systems play in generating macroeconomic volatility. II. OBJECTIVES/VALUES At the end of the course‚ the students should be able to do the following: Cognitive (Knowledge) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Identify the different macroeconomic models like the classical
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Impact of Corporate Governance on Stock Market Performance Farah Rezwan Reyan Zeenat Hai Nogmaye Habiba Abstract The paper aims to establish a relationship between Corporate Governance and stock market performance. In doing so‚ several variables had been identified by a thorough review of literature. These variables were measured on the basis of their performance‚ in respect to developed and developing countries‚ in relation to Corporate Governance. The performance measures were done by using
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valuable comments on an earlier version of the paper. However‚ the usual disclaimer applies. 2 Abstract This study investigates history‚ growth‚ prospects and volatility in Indian stock markets. Specifically‚ it looks for the possible implications of integration between the financial and the real sector with specific focus on volatility of stock market fluctuations and output. In this paper we analyze the growth of the Indian stock markets and its effect on the economy as a whole. We also examine
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been developed with a view to provide an evidence of stock volatility around the dividend announcement day in the Indian Capital Market i.e. National Stock Exchange of India. INTRODUCTION Dividend Checks are appreciated more than capital gains and provide an automatic control device on the spending levels. Thaler‚ 1980 The announcement of dividend by a company for its shareholders is an event that creates a lot of volatility in the company s stock returns. Investors can make money from
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The Risk and Return of Venture Capital John H. Cochrane1 Graduate School of Business‚ University of Chicago March 19‚ 2004 School of Business‚ University of Chicago‚ 1101 E. 58th St. Chicago IL 60637‚ 773 702 3059‚ john.cochrane@gsb.uchicago.edu. I am grateful to Susan Woodward‚ who suggested the idea of a selection-bias correction for venture capital returns‚ and who also made many useful comments and suggestions. I gratefully acknowledge the contribution of Shawn Blosser‚ who assembled the
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Anthony Ambrose ENG 111 9/2/14 The Perks and Perils of Being a Storm trooper in the 501st Legion Storm troopers are the bad guys that do the bad things. They do things like guard the Emperor‚ capture the princess‚ and look for the lost blue prints to the super weapon known as the Death Star from the Star Wars movie franchise. In real life the Storm troopers of the 501st legion are actually good guys that do extremely good things including raising several million dollars
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ECONOMICS ASSIGNMENT: THE BUSINESS ENVIRONMENT ECONOMICS ASSIGNMENT: THE BUSINESS ENVIRONMENT Compiled by SYNDICATE 8 [ALPHAS] Denishree Naidoo Marcus Gericke Adrian Pillay Tumi Mdudli Tina Sefotlhelo • Ontiretse Modise • • • • • ECONOMICS ASSIGNMENT : THE BUSINESS ENVIRONMENT TABLE OF CONTENTS 1. INTRODUCTION:......................................................................................................................................................1 2. FACTORS INFLUENCING
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