Stock Information a. IBM’s Beta = 1.64 b. IBM’s current annual dividend = $0.80 c. IBM’s 3-year dividend growth rate (g) = 8.2% d. Industry P/E = 23.2 e. IBM’s EPS = $4.87 3. With the information you have‚ use the CAPM to calculate IBM’s required rate of return or ks. CAPM: ks = RF +{ (kM Krf) x Beta} = ks = 4.78% + {7.5% x 1.64) = 17.08% ks = 17.08% 4. Use the GCM to find the current stock price for IBM. We will call this the theoretical price or Po. D1 = D0 x (1 + g) =
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Signal transduction Cell-cell recognition Intercellular joining Attachment to cytoskeleton and ECM 9. Membrane carbohydrates are important in cell-cell recognition. What are two examples of this? Distinguish between glycolipids and glycoproteins. Label the following structures: glycolipid‚ glycoprotein‚ integral protein‚ peripheral protein‚ cholesterol‚ phospholipid‚ ECM fibers‚ cytoskeleton microfilaments‚ integrins (go back to Chapter 6) Concept 7.2 Membrane structure results
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Pricing Model (CAPM) be used to estimate the cost of capital for real (not financial) investment decision? The CAPM is an important measure when it comes to real investment decisions because it provides a basis of comparison for financial decisions. The return on a project must be greater than what the firm can earn by investing an equivalent amount of money in financial investments. What is the risk-free rate that should be used in calculating the cost of capital using the CAPM? Explain. The
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Nike Inc Case Analysis: Nike‚ Inc.: Cost of Capital Monica Mojica FIU Finance 6800 Professor Smith Fall 2011 Table of Contents Problem Statement…………………………………………………………………………… 3 Situation Analysis……………………………………………………………………………... 3 Major Strategic Alternatives…………………………………………………………………...3 Decision Criteria……………………………………………………………………………….. 4 Analysis of Alternatives ………………………………………………………………………
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Cash-in-hand - Post Office Account Impressed cash - Showroom - DGT - Dhaka Gulshan Tower (DGT) Impressed cash - Showroom - DGK - Dhaka Gulshan Kintukie (D Impressed cash - Showroom - DKB - Dhaka Karwan Bazar (DKB) Impressed cash - Showroom - DDM - Dhaka Dhanmondi (DDM) Impressed cash - Showroom - DST - Dhaka Stadium (DST) Impressed cash - Showroom - DRS - Dhaka Rokeya Sharoni (DRS Impressed cash - Showroom - DUT - Dhaka Uttara (DUT) Impressed cash - Showroom - DSV - Dhaka Savar (DSV) Impressed cash
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Suggested Solutions to Sample Midterm #1 Fi 4000—Fall 2014 Problem 1 (20 points) Part A Suppose Mike wants to prepare an amount of money today to support his son’s college education. He expects his son to enter a college in 16 years with annual tuition and expenses of $25‚000 for 4 years. His first college tuition and expenses will due in exactly 16 years from now. Mike decides to put all the money that is required for his son’s college education today at a bank account earning rate of
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different rates on different borrowings as company does not borrow all borrowings at one rate. So‚ cost of debt can be calculated as: Cost of debt = Total Interest Payment/Total long term debt The cost of equity can be calculated using CAPM formula. According to CAPM
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rf | g | βfor CC | βfor NC | rm-rf | CAPM for CC | CAPM for NC | Share outstanding | tax | 0.0680 | 0.0300 | 1.3300 | 1.2300 | 0.0750 | 16.78% | 16.03% | 90‚500‚000 | 0.35 | Total gain in Operating imcome (in million) | 1997 | 1998 | 1999 | 2000 | 2001 | Terminal value | CSX | 0 | 240 | 521 | 730 | 752 | 5620.90 | Norfolk Southern | 0 | 231 | 429 | 660 | 680 | 5375.29 | NPV(in million) | 1997 | 1998 | 1999 | 2000 | 2001 | Terminal | Total | CSX | 0 | 114.3997 | 212.6677 | 255.1742
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pricing model and the weighted average cost of capital through calculation of the cost of capital for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three divisions utilizing CAPM and WACC. This case illustrates how to calculate beta based on comparable companies and to lever betas to adjust for capital structure; the appropriate risk-less rate and market risk premium; the choice of time period to estimate expected returns and
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Role of mycorrhizas in the mineral nutrition of host plants Mycorrhizas are very important in the uptake of nutrients such as P‚ N‚ K‚ Cu‚ Zn and Ca by plants especially in soils low in these nutrients. Since P is the most limiting nutrient in tropical soils‚ mycorrhizas are vital for improving P nutrition particularly for cultivated plants. External hyphae can absorb and translocate P to the host from soil outside the root depletion zone. The thin mycorrhizal hyphae (2-4 μm in diameter) are able
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