Bond Implied CDS Spread and CDS-Bond Basis Richard Zhou†‡ August 15‚ 2008 Abstract We derive a simple formula for calculating the CDS spread implied by the bond market price. Using no-arbitrage argument‚ the formula expresses the bond implied CDS spread as the sum of bond price‚ bond coupon and Libor zero curve weighted by risky annuities. We show that the bond implied CDS spread is consistent with the standard CDS pricing model if the survival probabilities and recovery are consistent
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capital structure‚ scope of international operations‚ recent stock performance‚ and dividend policy. We will examine how Nike’s international operations are conducted‚ its criticisms and strengths. Nike’s debt ratios‚ dividend payout ratios‚ dividend yield‚ and interest coverage ratios over the previous 5 years will be discussed and compared with industry benchmarks. Its bond ratings and the relation between the operating characteristics and its leverage will also be analyzed. Managers for Nike are
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Business Accounts – Assignment I Introduction Next plc is a retailer founded 1864 in the United Kingdom‚ that not only sells men’s‚ women’s and children’s wear but also has a home ware department. Their clothes wear are stylish but affordable. Throughout the United Kingdom and Ireland there are over 550 Next stores plus 50 franchises operating in Asia‚ Europe and The Middle East. This report will analyse and outline the company’s profitability‚ liquidity‚ solvency and investment potentials based
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The Wm. Wrigley Jr. Company: capital structure‚ VALUATION and cost of capital Introduction: Blanka Doborynin a managing partner of AURORA BOREALIS LLC tries to initiate a research for a potential investment in Wrigleys. They are trying to recapitalize the firm. Wrigley’s which is 100% equity financed has a market value of $13‚103‚000‚000 the question begins if it is totally equity financed is it running at its efficient level? Or Is it better to recapitalize the structure and thereby bring
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for creating the interest rate-sensitivity gap report? Limitations in the reliability of the interest rate-sensitivity gap as follows: Gap analysis does not capture basis risk or investment risk‚ is generally based on parallel shifts in the yield curve‚ does not incorporate future growth or changes in the mix of the business‚ and doest not account for the time value of money. Moreover‚ simple gap analysis (based on contractual term to maturity) assumes that the timing and amount of assets
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Asia-Pacific Finance and Accounting Review Vol. 1‚ No. 3‚ April – June 2013 pp. 37–55‚ ISSN: 2278-1838 www.asiapacific.edu/far F e af u n ls n tn o da s al y m A i S F oed e M a Ia lt C n n e c G ii i e C s d m pn R e St . s aG A i dm m . a an o v n h i Abstract I s d i po nl. eys d ar ne i n a u oey t s e tfn v ns ao ci i Ed uc dt e tcsr ro f v t mi e o t f e c r m bkci n e oehi a s ie of ct e t i no dy t a itac c oI s d s b i s ant oa u n v
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Financial Analysis Report Bauhaus & I.T (Financial year 2010/2011) Content 1) Summary 2) Company background 3) Industry outlook 4) Ration analyses 5) Limitation on analyses of ratio 6) Forecast of the company’s future prospect 7) Conclusion 1) Summary Bauhaus and I.T are the two fashion retail store company to be compared in this report. These two companies present the similarity on the brand image (unique multi-brand) and share the resembling
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currently has 1.8B shares outstanding * The beta for Dell is 1.33 * The yield on 3-month Treasury bill is .865% * The cost of equity using CAPM is 16.71% Step 3 instructs to go to www.reuters.com and find the competitors. However‚ there are none listed Step 4 instructs to calculate the cost of debt for Dell by going to cxa.marketwtch.com/finra/BondCenter/Dfault.aspx DELL.GJ yield to maturity .754% | DELL.GF .911% | DELL
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Chapter 17 Question B1 Bixton Company’s new chief financial officer is evaluating Biston’s capital structure. She is concerned that the firm might be underleveraged‚ even though the firm has larger-than-average research and development and foreign tax credits when compared to other firms in its industry. Her staff prepared the industry comparison shown here. Rating Category Fixed Charge Coverage Funds From Operations/Total Debt Long-Term Debt/Capitalization Aa 4.00-5.25x 60-80% 17-23% A 3.00-4
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THE ROLE OF DIVIDEND POLICY IN STOCK PRICE DETERMINATION IN TELECOMMUNICATION INDUSTRY: THE CASE OF PLDT AND GLOBE FATIMA KAYE A. DE CHAVEZ‚ LORELLA A. ESPELETA and LESLIE JOY A. PATIO College of Business and Accountancy University of Batangas ABSTRACT The issue of how much a company should pay its stockholders‚ as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the best dividend payout ratio the firm can adopt
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