Curriculum Source References The following references were used in the CFA Institute-produced publications Quantitative Methods for Investment Analysis, Analysis of Equity Investments: Valuation, and Managing Investment Portfolios: A Dynamic Process. Ackerman, Carl, Richard McEnally, and David Ravenscraft. 1999. “The Performance of Hedge Funds: Risk, Return, and Incentives.” Journal of Finance. Vol. 54, No. 3: 833–874. ACLI Survey. 2003. The American Council of Life Insurers. Agarwal, Vikas and Narayan
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8-9 IX. Conclusion…………………………………………………………………..9 X. Refrences…………………………………………………………………..10 ABSTRACT The following research will examine the capital structure of Pepsico and how the choices that the company makes affects their return on investment and their risk profile. The traditional theory of capital structure theorizes, “when the Weighted Average Cost of Capital (WACC) is minimized, and the market value of assets are maximized, an optimal structure of capital exists.” Pepsico analyzes
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is extremely difficult to gauge just how much investors expect on an annual return from us. Given all the circumstances that go in to making an investment decision for individuals I am going to use the Capital Asset Pricing Method to calculate what type of return we need to generate in order to make our shareholders feel like they made a wise investment. When trying to accurately value the stock of a company and expected returns there are three common methods of doing so. One method is the dividend
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Spreadsheet Analysis & Modeling MIS-505 Questions for Final Exam 1. What is name range? How can ranges be named? What are its uses? 2. What is lookup in Excel? What are the different kinds of lookup functions? What are its uses? 3. What is Index function? Write down the procedure of index function. What are its uses? 4. What is Match function? How you can write an Index and Match functions in a nested way? What are its uses? 5. Describe different kinds of text functions
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intermediary that allows investors to pool their money in accordance with predetermined investment objective. The fund manager is responsible for investing the gathered money into bonds, stocks, short-term money market instruments and/or other securities. Thus Mutual fund issues units to the investors and they become a shareholder or unit holder of the fund. The main advantage to mutual funds is that Investment in securities are diversified which minimizing risk & maximizing returns. In mutual
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FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14, Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010, and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget
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seems to have above average performance in the industry that means they are fit enought to survive in the indutry and show good results. By showing these results Arch has managed to rise debt capital for the aquisitions it recently did and for investments in infrastructure they
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available resources to select long time investments that will generate high return on the investment of those resources, Brealey, R. A et al (2006). Companies are into businesses with the main aim of making profit, therefore, it is vital for companies to know how to evaluate their expenditure. It is very important for a company to know the present value of the future investment and the time period it will take to mature before investing in a project. Examples of investment decision are purchase of new equipment
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internal or external obligations. As a result, Campello Graham & Harvey (2010) found that during the financial crisis, 86% of constrained United States firms said that they bypassed attractive investments due to difficulties in raising external finance. In contrast, only 44% of unconstrained firms avoided such investments. Creditworthiness The organization develops creditworthiness based on debts paid and minimum credit established with the lenders. Organizations take advantage of the credit’s contribution
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considerations According to Wickham, Wager and Glaser (2009), there are four classes of investment that reflect in an organization’s budgetary allocation in terms of importance to the organization that the vice president of support services will have to consider: 1) Transformation - These IT investments had an impact that would affect the entire organization or a large number of business units. The intent of the investment was to effect a significant improvement in overall performance or change the nature
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