American Greetings Question 1: The shares of American Greetings are currently trading at an EBITDA multiple that is at the bottom of its peer group. Do you think a 3.5 times multiple is appropriate for American Greetings? If not, what multiple of EBITDA do you think is justified? What is the implied share price that corresponds to that multiple? * First I calculated the market value of common equity by multiplying the share price to the shares outstanding. * And to get the Enterprise
Words: 371 - Pages: 2
Chapter 16: Market efficiency: Concept of market efficiency An efficient market has been defined as one in which the prices of securities fully reflect all available information. This requires that the reaction of the market prices to new information should be instantaneous and unbiased. If such conditions exist, it will not be possible (except by chance) to employ either past information or a mechanical trading strategy to generate returns in excess of the returns warranted by the level of
Words: 3343 - Pages: 14
Investment Principles and Analysis Trinity University FNCE 3352 Spring 2010 INSTRUCTOR: Carl M. Hubbard, Ph.D., CFA Office: CGC N3l6; phone 999-7283, carl.hubbard@trinity.edu OFFICE HOURS: 9:30 – 11:30 MW; 2:30 – 4:00 TTh; Other times available by appointment. TEXTBOOK: Zvi Bodie, Alex Kane, and Alan J. Marcus. Essentials of Investments, 7th Edition. New York: McGraw-Hill, 2008. CALCULATOR: Texas Instruments BAII Plus Calculator COURSE OBJECTIVES The learning objectives for students
Words: 1971 - Pages: 8
Int. J Latest Trends Fin. Eco. Sc. Vol‐3 No. 1 March, 2013 The Fundamental Analysis: An Overview Sónia R. Bentes#, Raúl Navas* ISCAL, Av. Miguel Bombarda 20, 1069-035 Lisbon, Portugal smbentes@iscal.ipl.pt * COPORGEST, SA, Av. da Liberdade 245, 9º C 1250-143Lisbon, Portugal rdnavas@gmail.com Abstract - In this paper we discuss the fundamental analysis by covering a number of studies in this field of research. This constitutes a useful tool to evaluate
Words: 2849 - Pages: 12
QUT | Case Study 4: Market Efficiency | Bill Miller and Value Trust | | Name: Huey Ngu Student ID: 08324093Tutor Name: David FairDate: 1 November 2013 | Words: 1097 | Contents Introduction 2 Past and current performance of Value Trust 2 Investment strategy of Bill Miller 3 Efficient Market Hypothesis 3 Bill Miller’s letter to shareholders 4 Changes in Chief Investment Officer (CIO) 4 Recommendation and Conclusion 4 Reference 6 Appendices 8 Appendix A: Data of LMVTX
Words: 2114 - Pages: 9
statement information, but in limited, suspect or impractical ways, and points out the pitfalls in these methods: o The Method of Comparables o Screening Analysis o Asset-Based Valuation Second, it outlines the architecture of fundamental valuation approaches that employ all available information, and illustrates that architecture with the dividend discount model. In this chapter, as in each chapter in the book, approach the material with the question: how do I get an edge
Words: 10037 - Pages: 41
Empirical Finance Value, Momentum, and Volatility ABSTRACT In this paper we approach two major topics on the central debate of asset pricing theory: the returns to value and momentum strategies and also, the comparison of volatility models. Our analysis is divided in two parts: in the first, we provide a monthly view on 115 stocks from the S&P 500 index for the past twenty four years and the respective return premia resulting from value and momentum strategies. In the latter part, the main goal
Words: 4237 - Pages: 17
Name: Wall Street Journal: Assignment #2 This is an INDIVIDUAL assignment. Submit your answers in hardcopy at the beginning of class. Check the syllabus for the due date. Handwritten answers are NOT acceptable. Use Word to write your answers. Chapter 4: Investing Please choose a publicly traded company that you find interesting or would like to invest in, and find their ticker symbol on http://www.msn.com/en-us/money or www.finance.yahoo.com. Two factors have been shown significant
Words: 783 - Pages: 4
Sonia Zahid Case 43 October 28, 2015 American Greetings Should American Greetings Repurchase its Shares? 1. Is 3.5x multiple appropriate for American Greetings? If not, what multiple of EBITDA to think is justified? Based on the information provided, I believe that the EBITDA Multiple of 3.5x is not justified. EBITDA Mutiple (or EV/EBITDA) is a better measure than P/E ratio because it is not affected by the changes in capital structure between debt and equity. And for this reason it also makes fair
Words: 1288 - Pages: 6
EFFICIENT MARKETS HYPOTHESIS AND OTHER THEORIES OF PRICING IN FINANCIAL MARKETS Name Course Title/Code Instructor’s Name Date Efficient Markets Hypothesis and other theories of pricing in financial markets Efficient market hypothesis (EMH) is a theory that emerged in the 1960s. It states that it is difficult to predict the market since the price has been set and reflect the current market conditions. It is a disputed and controversial theory. The theory is comparable to other theories of pricing
Words: 2300 - Pages: 10
