Case#1 Stock Valuation at Ragan Engines Ans. 1 EPS= $5.08 No. of shares= 300‚000 r=20% ROE=25% DPS=Total dividend/No. of shares=640000/300000=$2.13 Net income = EPS*No. of shares =5.08*300000 =1524000 g=Retention ratio*ROE =[1-(640000/1524000)*0.25 = (1-0.42)*0.25 =0.58*0.25=0.145=14.5% Po=D1/r-g =Do (1+g)/r-g =2.13(1+0.145)/0.20-0.145 =2.43885/0.055 = $44.34 Ans. 2 Industry growth rate g = Retention ratio*ROE
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following three questions. The reading of the E-learning week‚ Useem (1998)‚ will help answer the questions. 1. What are the relationships among stock markets (share prices)‚ large-scale layoff‚ and mergers and acquisitions as presented in the movie? James Salinger’s tactic is to downsize the company to boost the share price to avoid a merger or acquisition. Salinger believes that a merger or acquisition will break down the company. The intention with the large-scale layoff is to make investors
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name‚ ticker and price of the company. Key Financial Information should be presented in a table. Then give a brief company description. Also know how this stock has traded over the last year (use a stock price graph). ( Note: Bonds will differ from equities in their relevant data! Key Financial Information - Current share price and price target - Shares Outstanding‚ Market Capitalization - Revenue growth (EBIT)‚ Net Debt‚ EV (Enterprise Value) - EPS estimates and Price/Earnings Multiples
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Case#1 Stock Valuation at Ragan Engines Ans. 1 EPS= $5.08 No. of shares= 300‚000 r=20% ROE=25% DPS=Total dividend/No. of shares=640000/300000=$2.13 Net income = EPS*No. of shares =5.08*300000 =1524000 g=Retention ratio*ROE =[1-(640000/1524000)*0.25 = (1-0.42)*0.25 =0.58*0.25=0.145=14.5% Po=D1/r-g =Do (1+g)/r-g =2.13(1+0.145)/0.20-0.145 =2.43885/0.055 = $44.34 Ans. 2 Industry growth rate g = Retention ratio*ROE
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significant leap in earnings per share in 2008‚ which I am attributing to their significant increase in net income from 2007’s $2395 million to 2008’s $4313 million. I would want this stock in my portfolio specifically for its growth. I do realize that the stock price continues to fluctuate several times a day. Despite its dip in price in December‚ McDonald’s has rebounded from its drop to $83.31 on November 16‚ 2012 to current date value of $102.28 as of 3 PM. The stock price still fluctuates daily‚ but
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DELUXE Corporation Teaching Note Synopsis and Objectives Suggestions for complementary cases in capital structure choice and financial flexibility: “The Wm. Wrigley‚ Jr. Company: Capital Structure‚ Valuation‚ and Cost of Capital‚” (Case 34); “Rosario Acero S.A.‚” (UVA-F-1211); “Gainesboro Machine Tools Corporation‚” (Case 26) In July 2002‚ an investment banker advising Deluxe Corporation must prepare recommendations for the company’s board of directors regarding the firm’s financial
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Infosys Financing an Indian Software Start-up Group Members Chotipathana Laopoonpittaya 5504640325 Piyawat Jumphonjit 5504641258 Puvadol Pulput 5504641415 Shusidth Volyarngosol 5504641605 Sirichai Juengudomporn 5504641621 1. Define the issues Infosys is facing. Due to the fact that Infosys wants to offer its stock in the US market‚ the ‘true’ competitors of this company should be US companies NOT Indian companies. For this reason‚ it is less than rational to compare the performance of
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1. Introduction: Pakistan Telecommunication Company Limited (PTCL) is a mega corporation and a leading telecommunication authority in the State of Pakistan. The corporation provides and enforces policies for the telephonic services nation-wide and is the backbone for country’s telecommunication infrastructure despite arrival of a dozens other telecommunication corporations‚ including Telenor Corps and China Mobile Ltd. The corporation managed and operates around ~2000 telephone exchanges across the
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Share Price Analysis for International Airlines Group Introduction This report will have five main sections. At first will show the company background‚ to introduce some details like headquarter‚ business type‚ share price‚ short history and so on for the company. Then will describe the prominent movement for company share price from six weeks. After that it will give the reasons for share price movement. What happened in that times and how to influence the share price. In the end is the conclusion
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A PROJECT REPROT ON A STUDY ON “IMPACT OF RECESSION ON SHARE PRICES OF TRI SECTORS”` AT PCS SECURITIES LTD SUBMITTED IN PARTIAL FULFILLMENT OF THE REQURIEMENTS FOR DEGREE OF BACHELORE OF BUSINESS MANAGEMENT BY VINAY.S (08PSC08081) UNDER THE GUIDANCE OF MR.AMAR H.A LECTURER OF COMMERCE AND MANAGEMENT SESHADRIPURAM INSTITUE OF COMMERCE AND MAGEMENT BANGALORE-560020 2010-2011 SESHADRIPURAM EDUCATIONAL TRUST
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