common stock as opposed to his usual $25.00 cash coupon. Now that Kat’s common stock price has jumped above $6 per share, James now elects to receive 5 shares of Kat common stock. This does not change the fact that there is a discount to amortize (i.e. the discount must be present as $960 was paid for the face value of $1000) Therefore we must continue to credit discount on bond payable according to the amortization table provided (1/6 now). Now however, we must record issuance of common stock. For
Words: 679 - Pages: 3
related to underlying business performance of small caps relative to large companies rather than investor’ sentiment. Specific evidence to support this view was that from 1988 to 1997 small cap dividends grew at a rate 2% p.a. less than large cap stocks, which was in direct contrast to the period 1955 to 1988. Furthermore, over the same period, the small cap price/dividend multiple fell by 4.2%. When these factors are added together the approximate 6% small cap reversal is clear[2]. 2. Differences
Words: 3422 - Pages: 14
15% (b) If the Company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock? Cost of equity from new stock (R) = [D1 / P0 (1-flotation Cost)] + g Cost of equity from new stock (R) = [$3 / $30 (1-0.10)] + 0.05 Cost of equity from new stock (R) = [$3 / $30 (0.9)] + 0.05 Cost of equity from new stock (R) = [$3 / $27] + 0.05 Cost of equity from new stock (R) = 0.1611 (or) 16.11% Cost of equity from new stock (R) = 16.11% In this case, the cost
Words: 656 - Pages: 3
Stock Market Analysis: MANG 6221 Professor Dr. Marta Degl'Innocenti Assignment Length: 3,155 words (Excluding Endnote, Graph, Appendix and Reference) By Group Niagara Waterfall Thanat Pojkasemsin 25390422 Kanchana Leeratsatien 25088866 Leena Phaerakkakit 25712756 Synthia Manik 25665286 Jingwen Liu 25402323
Words: 4656 - Pages: 19
earnings information on 100 stocks as of April 30 2013. After examining the earnings surprises, you decide to buy an equally weighted portfolio of the top 10 stocks with the most positive earnings surprises. At the same time, you decide to short sell an equally weighted portfolio of the bottom 10 stocks with the most negative earnings surprises. Suppose the dollar amount for both the long and short is based on $10 million. The data for this exercise is included in the excel file SUE final q3.xlsx.
Words: 729 - Pages: 3
Firm Analysis Step 1 we choose the following two stocks: Netflix Sector: Services. Industry: Music & Video Stores. Industry info : In this industry there is a huge competition between all the companies however, the music and video industry is very far away from declining. Growth is always occuring to that industry new companies are always introduced and old companies struggle to stay in the market. Consumers never lose their apetite. However, technologies change new companies get in and old
Words: 1804 - Pages: 8
also need to establish a relationship between the Market Index and the Stock in itself. This relationship can be determined by running a regression and using the Market as the independent variable and the Stock as the dependent variable. In order to analyze the responsiveness of a stock, we need to understand and imply the concept of the beta. The beta is a measure of the volatility, or systematic risk, or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing
Words: 3303 - Pages: 14
betas for division-specific cost of capital 5. Biases and Limitations No financial modeling. In the previous years they would include WACC as part of case study 3 – Now it has been changed to 2 – without any actual financial statements. No excel modeling. Focused on how to address the issues. Multi-Divisional Comapnies Discount Rate, based on the U.S. The company has three divisions. The profit making divisions, marketing… blah, blah. Very different with each other in terms of how to
Words: 877 - Pages: 4
Lent Term – 2015 FM421 – Applied Corporate Finance Case Assignments • You will find an Excel file with all the exhibits from the case on Moodle. • Assignments MUST be submitted before class on Moodle. • Your assignment should not exceed 5 pages including appendices. “Tottenham Hotspur” To Do 1. Read case: HBS 9-209-059: Tottenham Hotspur Plc. There is an Excel spreadsheet to help you with the base numbers. 2. Read lecture slides. Case Preparation Questions
Words: 293 - Pages: 2
with 14 lessons that were shared with the masses: simplify, control the experience, innovate, ignore reality, have confidence, rethink design, team with winners, collaborate, vision + details, rebel (Kalla, 2012). Jobs was able to bring Apple’s stock from $10 a share to over $400 making it one of the most valuable technology companies in the world (CNNMoney, n.d.). Jobs had an ability to create innovative products and then create the need from the consumer. He was passionate about his products
Words: 800 - Pages: 4
