asked to analyze the capital structure of JASA Holdings, and make recommendations on a future course of action. JASA Holdings has 40 million shares outstanding, selling at RM20 per share and a debt-equity ratio (in market value terms) of 0.25. The beta of the stock is 1.15, and the firm currently has an AA rating, with a corresponding yield to maturity of 10%. The firm's income statement is as follows: EBIT | RM150 million | Interest Expense | RM 20 million | Taxable Income | RM130 million
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Country Snack Foods Co. (HCSF) is an American-based company specializing in snack food industry. Its competitive advantages mainly base on conservative management strategies, cost efficiency, high quality products as well as solid regional position. Despite stable growth over years, one big concern raised among company’s shareholders as well as financial analysts are its capital structure. As HCSF is all-equity funding, many perceived that the company has more potential to increase its financial performance
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Under Armour, Inc. Analysis (NYSE: UA) Under Armour was founded in 1996 by Kevin Plank (Current CEO and Chairman of the company) and became publicly traded on NYSE in 2006. Under Armour’s core products were performance sport apparel, footwear, and accessories. Its main market is North America (95% of its revenue). Now, it is the second largest sports apparel companies in the U.S. I. Ownership and Control i. Ownership 1. In the quarterly report ended at Sep. 30, 2014, Under Armour
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company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio of all the company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. Cost of debt The cost of debt is computed by taking the rate on a risk free bond whose duration matches the term structure of the corporate debt
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applies Beta (non-diversifiable risk) to link risks and returns of investments. According to Stahl (2016), Beta is a standard for measuring the systematic risk or the non-diversifiable risk. The uncertainty in the economy of a particular country causes the systematic risk. Systematic risk is that risk sharing or risk diversification cannot reduce. Economic downturns, war, natural calamities and a change of government policy are some of the activities that cause systematic risk. Both CAPM and Beta are
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and also wanted to consider the value of possible synergies as well to justify that whether investing in Mercury would significantly improve AGI’s business. In order to achieve the above set goal, our group estimate financial data of the merged company from 2007-2011 based on each’s historical data. Regarding the DCF model valuation, using a WACC of 12.17% and long term growth rate 7.42% for the terminal value, then we concluded value of $458.31 million at the end of fiscal 2006. In addition
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Week 11 Portfolio Management Project Report PMR Word Template Revised January 2013 Based on the portfolio management report you prepared in week 02 and by utilizing 12 point font, write a double spaced report not to exceed four pages to explain the following: What were your objectives in creating this portfolio? The main objective of my portfolio was to earn returns on my investment, as is typical in many portfolios. Some other objectives that I focused on were accumulation
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Northern Forest Products can change the risk structure of the company. For example, think about what would happen if the Plastic Products Division received a disproportionately high level of funding because their returns exceed the company hurdle rates (its growth rate substantially exceeds the corporate average). Assuming that the risk of the division remains unchanged, what effect would this have, over time, on NFP’s corporate beta and on the overall cost of capital? ______________________________
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[Type the company name] | FNCE644 Equity Project | Australian Fund Managers | | | | Our group has chosen Perpetual Investor Choice Fund for the long term investment. There are a variety of reasons as to why we chose Perpetual fund over the rest and they will be explained below. The first and foremost are the excess returns after entry fees and management fees. Fund | UBS | Perpetual | HSBC | Merrill | 5 year return | 11.90% | 13.81% | 7.83% | 8.24% | Benchmark Return | 9
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Cost of Capital at Ameritrade: 1. What factors should Ameritrade management consider when evaluating the proposed advertising program and technology upgrades? Why? When deciding whether or not to invest in the proposed advertising program and technology upgrades, Ameritrade should consider the following four key factors: 1. Cost of Capital: It is important that Ameritrade understand the risk associated with this project’s cost of capital. Ameritrade should look at the cost of capital
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