Strategic Capital Management‚ LLC ------------------------------------------------- Corporate Valuation 248 Group Project #1 Strategic Capital Management‚ LLC ------------------------------------------------- Corporate Valuation 248 Group Project #1 The main benefit of a hedge fund is that an investor can make higher returns with a hedge fund compared to the market returns by using leverage from taking a short position in certain stocks. It is possible for the return for hedge funds to be
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Chapter 6 Bond Valuation 6.5 Duration and Convexity Problem Given a 4-yr treasury bond with a face value of $1‚000‚ an annual coupon rate of 3.20%‚ which had a yield to maturity of 2.53%‚ this bond makes 2 semi-annual coupon payments. Thus has 8 periods until maturity and we are required to determine what the duration‚ modified duration‚ and convexity of this bond is‚ based on the Annual Percentage Rate (APR) and the Effective Annual Rate (EAR). Also‚ we are asked to explain an intuitive interpretation
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Fernández. IESE Business School Company valuation methods. The most common errors in valuations Company valuation methods. The most common errors in valuations∗ Pablo Fernández PricewaterhouseCoopers Professor of Corporate Finance IESE Business School Camino del Cerro del Aguila 3. Telephone 34-91-357 08 09. 28023 Madrid‚ Spain e-mail: fernandezpa@iese.edu In this paper‚ we describe the four main groups comprising the most widely used company valuation methods: balance sheet-based methods‚ income
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Should we eat sharks’ fins? Shark’s fin soup is a delicacy which is enjoyed by many people around the world‚ especially the Chinese as they believe that it symbolizes wealth‚ honour and respect. However‚ the practice of cutting off sharks’ fins alive and then throwing them back into the sea had caused increasing awareness and ire of animal rights and environment advocates. Statistics have estimated that one hundred million sharks are killed every year‚ not considering the fact that these numbers
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3K+2L . What is the marginal rate of technical substitution between capital and labor when K=3 and L=4? (The rate at which the firm can substitute between capital and labor while keeping output constant‚ with the change in capital in the numerator and the change in labor in the denominator.)
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VALUATION AND MANAGEMENT OF GOODWILL IN A BUSINESS. INTRODUCTION Goodwill is an intangible element connected with the going concern which include personality‚ reputation‚ the company name‚ convenient and favourable location of the business‚ quality of merchandise‚ efficient management‚ supply and demand for a choice product‚ affordable prices‚ efficient labour relations with employees‚ true and fair view and finally courteous methods of treating customers. Goodwill is often shown on the accounting
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institutions and protect investors (with the exception of hedge funds and private equity companies). Investment banks: help companies raise capital by coming up with securities with features those investors like‚ buy the securities from the company‚ and resell them. Investment bankers are also known as underwriters because the banks guarantee the firms will raise the capital they need. The investment banker acts as a facilitator for savers to businesses. Commercial banks: aka “department stores of finance”
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CHAPTER 4 BONDS ANND THEIR VALUATION Bond value--semiannual payment 1. You intend to purchase a 10-year‚ $1‚000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding‚ how much should you be willing to pay for this bond? N = 20 I/Y = 5 PV = -1124.62 PMT = 60 FV = 1000 Bond value--semiannual payment 2. Assume that you wish to purchase a 20-year bond that has a maturity value of $1‚000 and makes semiannual
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Problem solutions to ch 8 LG3 8-1 Stock Index Performance On October 9‚ 2007‚ the Dow Jones Industrial Average set a new high. The index closed at 14‚164.53‚ which was up 120.80 that day. What was the return (in percent) of the stock market that day? FV = PV × (1 + i) 14‚164.53 = (14‚164.53 - 120.80) × (1 + i) i = (14‚164.53 / 14‚043.73) - 1 = 0.86% LG3 8-2 Stock Index Performance On March 9‚ 2009‚ the Dow Jones Industrial Average reached a new low. The index closed at 6‚547
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management in that organization and any suitable changes to be brought about‚ to improve the present system? Cash management is a set of strategies or techniques a company uses to collect‚ track and invest money. Although cash by definition refers only to paper or coin money‚ in cash management‚ companies usually also work with cash equivalents such as checks. This is becoming increasingly common as the money system becomes more abstract‚ using electronic methods. Cash management lets companies process
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