Valuation & Allocation Models Dr. Edward Yardeni (212) 778-2646 ed_yardeni@prusec.com Amalia F. Quintana (212) 778-3201 mali_quintana@prusec.com - Introduction I. Fed’s Stock Valuation Model How can we judge whether stock prices are too high‚ too low‚ or just right? The purpose of this weekly report is to track a stock valuation model that attempts to answer this question. While the model is very simple‚ it has been quite accurate and can also be used as a stocks-versus-bonds asset allocation tool
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Nike Case Answers– Spreading out to stay together 1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez‚ he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadership of Nike? Answer: Informal structures are the set of unofficial relationships between organization members. Potential advantages of informal structures: ▪ Helping people
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REVENUE ALLOCATION FORMULA IN NIGERIA INTRODUCTION Prior to the discovery of oil in Nigeria‚ other sectors of the economy thrived. Agriculture‚ for instance‚ was a major source of revenue for the Western Region. The Eastern Region that was less endowed devised other sources of revenue. All this has however changed since the discovery of oil in the country. This has led to the demise of the other productive sectors of the economy. In fact‚ Nigerians are poorer today than they were in the pre-oil boom
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Street Journal. Cost Management and Strategy – refer to your assigned questions and problems Cost Drivers and Basic Cost Concepts -- What is a cost? Define cost pools. What is a cost object? cost assignment? Contrast a direct cost with an indirect cost. Define cost allocation. What is an allocation base? Contrast cost assignment with cost allocation. What is a direct material? Direct labor? Indirect material? Indirect labor? factory overhead? What are conversion costs? Prime costs? What are the
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indirect costs are allocated using only one or two cost pools. All or most costs are identified as output unit-level costs. Products make diverse demands on resources because of differences in volume‚ process steps‚ batch size‚ or complexity. Products that a company is well suited to make and sell show small profits while products for which a company is less suited show large profits. 9-5 (1) Identify the activities that consume resources and assign costs to them. (2) Identify the cost driver(s)
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they are subject to taxes - Target rate of return: 5%+inflation - Change allocation policy when capital markets change or if there are new investment opportunities‚ law changes‚ or risk aversion changes. - Investment committee: 3 board members and 3 non board members - New asset allocation policy: o Reduction in exposure to of the investment portfolio to domestic public equity (31% to 20%) o Increase in allocation to absolute-return strategies (hedge funds-make profit whether market goes
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Sports and officially became Nike‚ Inc. in 1971 that is well-known with the swoosh logo and engaged in the design‚ innovation‚ marketing and selling of athletic footwear‚ apparel‚ equipment‚ accessories and services. The company takes its name from Nike the Greek goddess of victory. The company is renown with its slogan “Just Do It” [1] Nike products are sold all around the World includes North America‚ South America‚ Europe‚ Asia Pacific‚ Middle East and Africa. Nike markets its products under its
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Case # 5-0015 Updated August 18‚ 2003 Note on Private Equity Asset Allocation Over the past 20 years‚ managers of institutional capital have increasingly allocated more funds to private equity. During that time period‚ private equity has been an asset class with relatively high returns compared to public stock market indices. However‚ the recent economic downturn has made it clear that this asset class also has significant risks. This note describes the characteristics and challenges of private
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months. In 2000‚ it earned a return of 20.7% while the S&P 500 fell 10.1%. At June 2001‚ NorthPoint Group’s return stood at 6.4% while the S&P 500 stood at -7.3%. Nike‚ Inc. is an American multinational corporation which is founded on January 25‚ 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight and officially became Nike‚ Inc. on May 30‚ 1978. The company is engaged in the design‚ development and worldwide marketing and selling of footwear‚ apparel‚ equipment‚ accessories and services
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Using EXCEL for Asset Allocation and Performing Market Efficiency Studies 1. Introduction There are several features in EXCEL that are very useful for asset allocation and performing market efficiency studies. These features used in conjunction with live or historical data allows one to apply the sophisticated techniques discussed in this class in practical situations. This write-up will introduce students to the various mathematical and statistical functions available in EXCEL and explain
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