the combination of the CAPM model and the MM theory Dilina Kuerban (FIN620 Long-term financial management) 11/15/2014 Abstract 1. Modigliani- Miller theorem……………………….......………..….……………… (1)Modigliani and Miller Proposition --No tax scenario…………………………… (2)Modigliani and Miller Proposition--with taxes scenario………………………… 2. Combination of CAPM model and MM theory………………………………….. 3. A case study……………………………………………………………………….... 4. Limitation of combination of CAPM and MM theory………………..…………
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Information systems (IS) focuses on the system making use of technology and information technology (IT) focuses on technology and how it can help in disseminating information. Usually Information system are build using the information technology. Information system referring to system designed to create‚ store‚ manipulate‚ communicate and disseminate information. Information systems typically include an IT component but are not purely concerned with IT‚ focusing in instead‚ on the end use of
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remainder. Analysis : a. Economic Value Added EVA is a measure of a company’s financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit. Based on the EVA‚ the company performance of coke vs pepsi can be measured. 1994 1995 1996 1997 1998 1999 2000 Coke’s EVA 1602 1814 1292 1601 1422 1063 1016 Pepsi EVA’s (464) (760) (916) 24 428 522 1201 If we look at the two of the cola company EVA’s we can clearly point
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Linux vs. Mac vs. Windows Linux vs. Mac vs. Windows The operating systems Linux®‚ Macintosh® (Mac) and Microsoft® Windows® are the main software to every computer system to run properly along with other hardware. These operating systems (OS ’s) are very different in several ways‚ but they also have some similarities too. Linux‚ Mac and Windows use memory management‚ process management‚ file management and security management to operate the computer systems correctly
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The comparison of underlying assumptions and conclusions of the CAPM and the APT models Prepared by: Professor: Prague‚ 2013 Introduction This paper studies the characteristics and application of valuation models of financial assets CAMP and APT. The methodology of measuring financial assets emerged in the second half of the 20th century‚ the most effective in practice‚ are now pricing model of financial assets as a CAPM and its subsequent conversion APT. With the pricing model of
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Information compiled by ___________________________________________________________ Stocks have historically had much higher returns than bonds. Can these excess returns be justified by the higher risk attached to stocks‚ or are there alternative explanations? The following is an abbreviated history of studies and models that articulate the logic of stock returns; included are both support for and alternatives to the equity risk premium. Edgar Lawrence Smith’s 1924 book Common Stocks
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been many cases that have made an effort to abolish segregation. Two cases that didn’t just make an effort‚ but did just that were Plessy vs. Ferguson and Brown vs. Board of Education. They were related to each other as well because one changed the precedent established in the other. They also helped the country identify more with freedom than slavery. The Plessy vs. Ferguson case happened in 1892 and was about a man named Homer Plessy who was an octoroon. He bought a ticket and sat in a whites only
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Google Drive vs. SkyDrive vs. Dropbox vs. iCloud Jia Shi Yidi Zhang Nan Song Ly Le INTRODUCTION Along with the development speed of technology‚ the amount of data passing by or consumed by people around the world keeps growing rapidly. The storage devices seem to unable for storing growing data amount. In addition‚ maintenance and back-up of data are needed just in case of accident. To meet the needs mentioned above‚ the cloud computing is developed especially cloud storage which have
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THIRD DIVISION [G.R. No. 154765. March 29‚ 2007.] PEDRO T. BERCERO‚ petitioner‚ vs. CAPITOL DEVELOPMENT CORPORATION‚ 1 respondent. D E C I S I O N AUSTRIA-MARTINEZ‚ J p: Before the Court is a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court assailing the Decision 2 dated February 11‚ 2002 of the Court of Appeals (CA) in CA-G.R. CV No. 56484 which set aside the Decision 3 dated May 27‚ 1996 of the Regional Trial Court‚ Branch 88‚ Quezon City (RTC-Branch 88) in Civil Case
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‘Portfolio theory and the capital asset pricing model (CAPM) are essential tools for portfolio managers and other stock market investors’ In order to be successful‚ an investor must understand and be comfortable with taking risks. Creating wealth is the object of making investments‚ and risk is the energy that in the long run drives investment returns. PORTFOLIO THEORY Modern portfolio theory has one‚ and really only one‚ central theme: “In constructing their portfolios investors need to look at
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