BUS320 April 23, 2014 The Little Book That Beats The Market The book entitled, the Little Book That Beats the Market, is essentially a beginner’s guide to investing. Author Joel Greenblatt begins the book by breaking down the stock market into the most basic form. His goal was to explain it in a way that could be understood and followed by all five of his children, ages 6 to 15. He begins by using an example of a sixth grade boy named Jason selling sticks of gum for 25 cents apiece
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profitability of a project because there are several ways to measure the future value of cash flows. In the case of the e-Activity, short-term project may be ranked higher than the long-term project because of the high cost of capital. Since of the time value of money states that a dollar’s future worth may differ from what it is today, it may be more favorable to work on a short-term project. Changes in the cost for capital will directly affect the IRR, whether positively or negatively. The high cost of
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discuss the time value of money (TVM) and use the concept of TVM in the valuation of bonds and stocks. In part two we will understand the methods for computing cash flows and the company’s cost of capital and then use them to learn capital budgeting which involves project selection decisions. COURSE OBJECTIVES The objective of this course is to give the students an operational knowledge of corporate finance by combining theory and applications. Introduce the concepts or risk, return, and time-value-of-money
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Discussion Questions 1. The valuation of financial assets is based on the required rate of return to security holders. This, in turn, becomes the cost of financing (capital) to the corporation. 2. The valuation of a financial asset is equal to the present value of future cash flows. 3. Because BCE, Inc. has less risk than Air Canada, BCE, Inc. has relatively high returns and a strong market position; the latter firms have had financial difficulties. 4. The three factors that
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EBMA Level 8 Diploma in strategic Business Research and Leadership Direction Unit Title: Strategic Financial Analysis and Planning Table of Contents Executive Summary 3 1.Critique and evaluate research ....... 4 2.Critically apply modern financial tools 6 3.Use main types of investment appraisal tools 8 4.Critically evaluate the importance of research 10 References 11 Executive Summary The decision making of management
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BUSINESS VALUATION METHODS (All Valuations MUST BE based on Historical Data) I. Adjusted Book Value Take the Book Value of net worth -assets not acquired +liabilities not assumed +fair market value of assets acquired +any net worth adjustments =Adjusted Book Value ____________________________________________________________ II. Capitalized Adjusted Earnings First Step: Adjust Historical Earnings Seller’s Discretionary Cash Flow Net Profit +Officer’s salary +Discretionary expenses -New Owner salary
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TIME VALUE OF MONEY: ANNUITY CASH FLOWS FIN u02a2 Would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Why? Compound interest arises when interest is added to the principal. Therefore, the interest that has been added also earns interest. This addition of interest to the principal is called compounding. If the savings account has $1,000 initial principal and 20% interest per year, the account will have a
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thought that by putting money to the side, under the mattress or, even in the cookie jar that eventually one day they would be rich. Well not to spoil the surprise but the years it would take to make one rich by those means are far off and nothing in between. This is where Time Value of Money comes in. Time Value of Money is the idea that a dollar today is worth more than a dollar in the future, even after the adjustments of inflation, interest rates, and appreciation until the time come for the dollar
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1 1) Leverage and risk. This question examines leverage. It is in the context of a personal investment in a home. However, the basic idea applies generally to investments made with borrowed money. (10) With your Masters from the University of Queensland in hand you have decided to purchase an apartment in Spring Hill. The apartment costs $200,000. A) I have calculated the percentage return on the apartment as a function of possible apartment prices next year (2nd row of the table). Apartment
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上升星座分析 该星盘的上升星座是：巨蟹座 27°31'30"4 上升星座为巨蟹座的人温文儒雅，内心充满爱，给人温暖亲切之感。火相、风相太阳星座遇上升巨蟹座，内心的情感会更丰富，有利思考，平和心境。而火相太阳星座遇之，直觉会更加敏锐，既坚强又感性，常常会把灿烂、亲切的笑容挂在脸上，让人想要亲近。水相太阳星座遇到则会更为内敛，柔柔的，充满温情，但依赖之心也更加强烈。 上升位于巨蟹座：母性、家庭、爱 优点：照顾，仁爱，勤俭。 缺点：情绪化，斤斤计较，没有自信。 上升代表：灵魂，外在行为，生活态度。 基本特质： 上升星落在巨蟹座的人有关怀和照顾别人的母性本能，但你的内心却很敏感且容易受到伤害。你有点怕生，但很容易亲近，是非常亲切而勤奋的人。 上升星座巨蟹座具体特质： 上升星落入巨蟹座的你很懂得保护自己，你虽然会对不熟悉的人表示出关怀之意，但你绝不会说出自己内心的感觉。除非你们已经相互了解并累积了不少的感情，你才会解除安全戒备措施，开始信任对方并分享心事。由于你将许多的事都藏在心里，加上你又有些敏感，情绪会显得比较多
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