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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textbooks usually use is a risk free rate of T-bills but corporations use 10-year treasuries 33% of the time‚ and also choose 10-30 year treasuries 33% of the time. By looking at the above number I thought using a 10 yeartreasury which currently had a yield of 5.39% was the best option available. K(cost of Equity)=RF+Beta(RM-RF) 5.870-5.39+0.8(6-5.39) Therefore the cost of equity is 5.870% For the dividend discount model the rate of growth is zero. Although (exhibit4) states that the value
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The Little Book that Still Beats the Market The Little Book that Still beats the Market is a short piece of writing that presents clear and simple explanations of the basics of investing and how the stock market works. Through his years of experience and expertise‚ Joel Greenblatt has constructed a “magic formula” that promises to deliver above-average returns on your investment in the long run. In this paper‚ I will discuss several topics that include: a summary of the book‚ what I found most
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SEM712 CAE and Finite Element Analysis Basics of Solid Mechanics Jiangting Wang jiangtin@deakin.edu.au School of Engineering 1 Week 02‚ Trimester 1‚ 2013 SEM712 CAE and Finite Element Analysis Contents Introduction Strain Stress Stiffness Tensor Material Failure Reading for this topic: Appendix B in Hutton’s book Section 2.1 – 2.3 (P12-22) in Liu’s book (The finite element method: a practical course‚ 2003) Online resources: Deformation: http://en.wikipedia
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References: Bayer (2002). Bayer AG A Corporate Profile. Available: http://www.corporatewatch.org.uk/?lid=198. Last accessed 23rd May 2013. Bayer (2012a). Bayer AG dividend yield & history - BAYN.DE. Available: http://www.dividendsranking.com/Bayer-AG-dividend-yield.html. Last accessed 22nd May 2013. Bayer (2012b). Annual Report 2012. Available: http://www.annualreport2012.bayer.com/en/value-management.aspx. Last accessed 23rd
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guidance for a full-year operating profit of between 164 and 173 million pounds‚ versus 158.1 million pounds in 2014. Comparison of Britvic with its main competitor Nichols (1-year chart) FUTURE PLANS The shares have a 3.5pc prospective dividend yield on offer‚ and that is set to increase by 10pc during the next two years‚ so the shares remain a solid hold. Has strong marketing plans and a significant innovation pipeline in place for 2015 KEY RISKS Operating in an extremely difficult UK drinks
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A Guide to Case Analysis I keep six honest serving men (They taught me all I knew); Their names are What and Why and When; And How and Where and Who. Rudyard Kipling 2 STRATEGY: Core Concepts and Analytical Approaches I n most courses in strategic management‚ students use cases about actual companies to practice strategic analysis and to gain some experience in the tasks of crafting and implementing strategy. A case sets forth‚ in a factual manner‚ the events and organizational circumstances
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Price-to-earnings ratio (P/E) is often used for assessing the company’s stock price. P/E is determined by first calculating the earnings per shares (EPS)‚ which is the post-tax profits divides by the number of shares (Figure 1). Trailing P/E is equal to current market share price divided by trailing earnings per share for the past 12 months‚ whereas forward P/E is equal to current share price divided by expected earnings per shares for the next 12 months or next full-year fiscal period (http://www
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shareholders’ investment. When companies stay profitable and have stable earning‚ dividends can send a strong message to the market about the outstanding performance of management to attract more investors. However‚ when it is determined that the cash would yield more profits by reinvestment‚ paying out dividends may not be favorable. Company uses cash to pay dividend‚ and this reduces the company’s assets and the company’s equity. Thus‚ stock price of the company decrease to compensate for the drop in the
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Nations Bank Purpose: The purpose of this case is to calculate a stock’s price using its past dividends as an indicator of future dividend growth rates. The student must determine the stock’s required rate of return (CAPM) and future expected dividend growth rate and use the Gordon Growth Model to calculate a current price. 1. The equation for CAPM is kj = Rf + [bj x (Rm - Rf)] where‚ kj = required return on asset j‚ Rf = risk-free rate of return‚ bj = beta coefficient for asset
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