1. DIVIDEND DISCOUNT MODEL The constant growth DDM stated that the current value of a firm’s stock price was equal to next year’s expected dividend divided by the investor’s required rate of return minus the expected dividend growth rate. And the required return could be decomposed into two parts: the expected dividend plus the expected future growth in dividends. That is the stock price equals dividend divided by the indicated dividend yield. And Wal-Mart has an indicated dividend yield of 1
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BUSN 1001 1. Introduction This report is to present the financial strengths and weaknesses of Woolworths Limited and Metcash to make recommendations to the potential investor. Woolworths Limited Woolworths Limited (Woolworths) is a diversified retailer‚ engaged in operating supermarkets‚ petrol stations‚ general merchandise stores and hotels. The company’s product portfolio includes grocery‚ general merchandise‚ consumer electronics‚ liquor‚ beverages and fuel. It offers private label
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of Political Economy 112‚ 1223-1256. Ang‚ Andrew‚ Monika Piazzesi‚ and Min Wei‚ 2004‚ “What Does the Yield Curve Tell us About GDP Growth?” Journal of Econometrics‚ forthcoming. Ball‚ Ray‚ 1978‚ Anomalies in Relationships Between Securities’ Yields and Yield—Surrogates‚” Journal of Financial Economics 6‚ 103-126. Bansal‚ Ravi‚ Robert F. Dittmar and Christian Lundblad‚ 2005‚ “Consumption‚ Dividends‚ and the Cross-Section of Equity Returns.” Journal of Finance 60‚ 1639-1672. Bansal‚ Ravi‚ and Amir Yaron
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Questions 1. a. Discuss the specific items of capital that should be included in the WACC. Because WACC is used for making long term capital investment decisions‚ the WACC should include long term debt‚ preferred stock and common stock that helps pay for long term assets. Also include short term sources of capital like accounts payable and accruals dealing with noninterest bearing liabilities and short term interest bearing debt like notes payable b. The comptroller currently finds the weights
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earnings ratio (P/E)‚ the dividend payout and the dividend yield. The price earnings ratio helps to indicate to investor how expensive the shares of common stock of a firm are. Dividend yield is part of the stockholders ROI and is represented by the annual cash dividend. Dividend yields have historically been between 3% to 6% for common stock and 5% to 8% for preferred stock. Dividend payout ratio shows the proportion of the earnings paid to common shareholders. Dividend payout for manufacturing companies
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Number of employees 2008 = -9‚260 / 5‚418 = -1.71 2009 = -14‚416 / 5‚028 = -2.86 Sales per employee: = (Sales) / Number of employees 2008 = 294‚414 / 5‚418 = 54.34 2009 = 267‚551 / 5‚028 = 53.21 Dividend per share (DPS): =Dividend ordinary shares / number of ordinary shares 2008 = 1‚705‚000 / 42‚625‚853 = 4 Pence 2009 = 426‚000 / 42‚638‚103 = 1 Pence
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Fill in some basic information about your company Name of company The Coca Cola Company[1] Principal exchange where the company trades New York Stock Exchange[2] Market price of the stock $56.96 as of 12/07/09[3] Annual dividend $1.52 per share[4] Last dividend paid on April 1‚ 2008[5] 2. Read the business summaries and management’s discussion and analysis (MD&A). Summarize the remarks. Coca Cola prides itself on being the world’s largest manufacturer‚ distributor and marketer
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returns. 3. The cost of debt is equal to one minus the marginal tax rate multiplied by the coupon rate on outstanding debt. 4. The cost of issuing preferred stock by a corporation must be adjusted to an after-tax figure because of the 70 percent dividend exclusion provision for corporations holding other corporations’ preferred stock. 5. The firm’s cost of external equity capital is the same as the required rate of return on the firm’s outstanding common stock. 6. The cost of equity raised
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BHP Billiton Financial Analysis Report This report analyses the financial performance of BHP Billiton‚ a diversified natural resources group‚ for a potential investor. It uses the financial ratios to analyse the company’s profitability‚ liquidity‚ efficiency and investment potential. Qasim 1 Introduction 1 2 Peer companies Selected 1 2.1 Vedanta Resources PLC 1 2.2 Vale Limited 1 3 Financial Analysis of BHP Billiton 2 4 Financial Analysis of Peer Companies 3 5 Interpretation
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Mid-Term Examination‚ Winter 2010 Level: Masters Full Marks: 100 Program: MBAe Section B Pass Marks: 60 Course: Financial Management Time: 3 Hrs. Term: III Candidates are required to be original and fair in the presentation of their answers. The figures in the parenthesis indicate the marks for respective question. Attempt all the questions Section A Attempt all questions Each question carries 6 marks [5 x 6 =30] 1. You have to pay $12‚000 a year in school
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