To: JetBlue Management Team From: Subj: JetBlue IPO Price Recommendation Date: April 11‚ 2002 Introduction JetBlue is a company that was founded on not accepting the status quo with regard to how airline travel is “supposed to be”. Recent history shows that low-fare airlines are gaining momentum‚ and JetBlue’s business model sets us apart- our fleet is newer‚ more reliable and efficient. We offer the lowest cost per available seat mile than any other U.S. airline‚ and we do it while maintaining
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tQuestion: a) What is the firm’s current book value per share? Current book ratio per share = Book valueTotal common share = 60‚000‚0002‚500‚000 = $ 24 b) What is the firm’s current P/E ratio? Current P/E ratio = price per share of common stockearning per share = $ 40$ 6.25 = $6.4 c) (1) What is the current required return for Encore stock? Ri = rf+β (rm – rf) =0.06 +1.1 (0.088) = 0.16 (2) What will be the new required return for Encore stock assuming that
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million shares outstanding‚ with a current market price of PKR 45 per share. Assuming that this project is new information and is independent of other expectations about the company‚ calculate the effect of the new equipment on the value of the company and the effect on company’s stock price. Solution: NPV of the new printing equipment project = $750 million - $500 million = $250 million. Value of company prior to new equipment project=100 million shares x $45 per share = $4.5
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purchase a share of Pintail stock for $50‚ and then sell the share of Pintail stock for $200. The net gain is: $200 – ($75 + $50) = $75. If the call is a European call‚ you should buy the call‚ deposit in the bank an amount equal to the present value of the exercise price‚ and sell the stock short. This produces a current cash flow equal to: $200 – $75 – ($50/1 + r) At the maturity of the call‚ the action depends on whether the stock price is greater than or less than the exercise price. If
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............................ 2 Credit Rating............................................................................................................................. 2 Stock Price Movement .............................................................................................................. 2 STOCK PRICE VALUATION .............................................................................................................. 3 Discounted Cash Flow Method (DCF) Method...............
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follows: Number of ordinary shares Ordinary share price (ex div basis) Earnings per share Proposed payout ratio Dividend per share one year ago Dividend per share two years ago Equity beta 5 million $3·30 40·0c 60% 23·3c 22·0c 1·4 Other relevant financial information Average sector price/earnings ratio Risk-free rate of return Return on the market 10 4·6% 10·6% Required: Calculate the value of Danoca Co using the following methods: (i) price/earnings ratio method; (ii)
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The University for business and the professions MSc Degree in Shipping‚ Trade and Finance MSc Degree in Supply Chain‚ Trade and Finance MSc Degree in Energy‚ Trade and Finance Cass Business School Module Code SMM586 Exam title Corporate Finance Full/Part time Date 1st May 2013 Time 10.00 -13.00 Division of Marks: Section A carries 36 marks‚ Section B carries 28 marks and Section C carries 36 marks. Instructions to students: Students should answer TWO questions
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the law 2- It asks for the nullification of the share sales to Saint Louis The European competition authorities will have a close look at the merger because Nestle/Perrier would control 56% of the mineral water market. Combined with BSN the market control shoots-up at 82% Blueprint of events 1989 - Exor increase control stake in Perrier to 35.5%. Prior to the increase it owned 23.7% 19/01/1990 – Benzene scandal Share price drops to FF 1200 from FF 2000 Profits from Perrier
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unusually large numbers of options and CEOs and other insiders sell large quantities of shares. r 2005 Elsevier B.V. All rights reserved. JEL classification: G14; G34‚ M41 Keywords: Earnings management; Stock options; CEO compensation 1. Introduction The past 15 years have seen an enormous increase in stock-based and optionbased executive compensation. The median exposure of CEO wealth to firm stock prices tripled between 1980 and 1994‚ and doubled again between 1994 and 2000 $ We are grateful
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Finance | | | | | | | | | | Course Project - Part 1 - Task 1: Assessing loan options for AirJet Best Parts‚ Inc. | | | | | | | | | | | | | | | | Question 1: | APR (given) | EAR (calc) | | 2nd ICONV | | | | | | National First | 3.25 + 6.75 = 10% | 10.25 | | NOM = 10% | | | | | | | | | | C/Y = 2 (semiannual) | | | | | | | | | | EFF = 10.2500 | | | | | | | | | | | | | | | | | | | | | | | | | | Regions Best
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