Advanced Financial Models Example sheet 1 - Michaelmas 2010 Michael Tehranchi Problem 1. In a one-period model, a num´raire asset is called risk-free if its time-1 price e i i is not random: if asset i is risk-free, then S1 = (1 + ri )S0 for a real constant ri > −1, called the risk-free rate of return. Suppose that a market model has at least one risk-free asset. Show that if there is no arbitrage, then the risk-free rate of return is unique, in the sense that if both asset i and asset
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Brief Introduction Netscape Communication Corporation is going to issue its initial public offering in August 9, 1995. It is a young but rapidly growing company which is founded in April 1994 and only operates for 15 months. Netscape is also going through losses and never gain profits. But in the time of rapidly developing of the Internet, Netscape now had succeeded in capturing 75% of the Web browser market by using its most popular product, Netscape Navigator. Netscape has set the
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Equity Offerings Case: Netscape Initial Public Offering (HBS 9-296-088) Case Questions: Please use the excel sheet I prepared and uploaded on the Blackboard. I inserted already the assumption for your convenience. 1. Why has Netscape been successful to date? What is its strategy? How risky is its current competitive situation? 2. Value Netscape. Use the following assumptions: a. Total cost of revenues stays at 10.4% of total revenues. b. R&D stays at 36.8% of total revenues. c. Other operating expenses
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1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? Marc Andreessen, along with the other founders of Mosaic, accomplished what other Internet providers before failed to do: they created a Web browser that did not require the user to have expertise in HTML coding. Mosaic’s user-friendly click-and-point interface allowed for a wider customer base. After purchasing
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2011年第14期（总第139期） 2011年6月16日 | | |期货合约规格发展研究[1] | | | | | | | | | |栏目：市场研究 | |
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Initial Public Offering Executive summary Netscape Communications Corporation was one of the big players in the dot-com era and information technology boom of the late 1990's and contributed in making the Internet and World Wide Web known to common people. On August 9, 1995, Netscape went through the initial public offering (IPO) process. Dramatically, on August 8, the day before the IPO, Netscape's lead IPO underwriters recommended to the Netscape board to increase the initial offering price
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bernama Netscape Communication Corporation. Kehadiran Netscape ternyata mendapat respon yang sangat baik dari pasar. Kemampuan Netscape dalam inovasi membawa “Netscape Navigator” menjadi peramban web terkenal dan paling banyak digunakan pada era 1990-an. Tingkat pertumbuhan Netscape pada tahun 1995 cukup signifikan, revenue Netscape per Juni 1995 meningkat 23,89% dari revenue yang diperoleh per Desember 1995. Kendati Netscape belum mampu menghasilkan profit, namun perkembangan Netscape bagus dan
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NETSCAPE QUESTIONS 1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? 2. What/who have been the past sources of capital for Netscape and how much capital did they provide? 3. What is the ownership structure at the time of the IPO (who are the primary owners)? Why do the ownership shares not correspond to the initial investments (the ratio of initial
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Browser programs, specifically Netscape, threatened this barrier, by allowing software developers to create software that could run using the browser software as a platform for the program. Therefore, software could be created that could still be used with Microsoft Windows, but would not have to be. Microsoft recognized this development as a threat to its operating system monopoly. Initially Microsoft attempted to divide the market with Netscape, but Netscape refused. To defend its operating
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1. Briefing: In December 1999, Wilson applied for Citibank credit card and signed an acceptance certificate in which she agreed to be bound by the terms and conditions of the credit card agreement. Citibank then issued a credit card to her, which Wilson began using. In July 2001, Citibank mailed Wilson her credit card statement, which informed her that it was modifying the terms of the original agreement. This revised agreement was enclosed with the credit card statement. After the July 2001 statement
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