do well in the short run‚ but not in the long term. Value stocks are that equities that have low book to market (B/M)‚ low price to earnings (P/E)‚ which have stable revenue sources and incomes and whose stock prices do not have great volatility. Value stocks perform better in the long run then glamour stocks‚ equities that have high B/M and P/E ratios. These glamour stocks usually have a lot of momentum going for them‚ but in the long run they inevitably revert to the mean‚ thus there high shares
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Minicase #17 Electronic Timing‚ Inc. Electronic Timing‚ Inc. (ETI)‚ is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the market for frequency timing generators‚ or silicon timing devices‚ which provide the timing signals or “clocks” necessary to synchronize electronic systems. Its clock products originally were used in PC video
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Case 19 Georgia Atlantic Company Dividend Policy CASE INFORMATION Purpose The purpose of this case is to have students examine dividend policy--cash dividends‚ stock splits‚ and stock dividends--from the viewpoint of its effect on corporate share prices. Time Required About one and a half hours of student preparation. If the case is to be written up and handed in‚ double the time required. Complexity A--relatively simple. Flexibility This case can be used in
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Report Date: March 14‚ 2014 Price as of 03/14/2014 Verizon Communications Inc. $46.08 NYSE: VZ BUY We project that Verizon will outperform the market over the next 6 to 12 months. This projection is based on our analysis of three key factors that influence common stock performance: earnings strength‚ relative valuation‚ and recent price movement. Reiteration 3/14/14 Previous Rating Hold (1/25/14 - 3/07/14) 52-Week Price Range $45.91 - $53.91 Earnings Strength very negative
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$60‚000‚000 Total common shares outstanding 2‚500‚000 Common stock dividend per share $4 a. Firm’s current book value per share: Book value = $ 60 million = $24 Shares outstanding 2.5 million b. Firm’s current P/E ratio: Price per share of common stock = $ 40 = 6.4 EPS $ 6.25 c. Required return of Encore Stock (Use Capital Asset Pricing Model / CAPM) risk premium 1. Current: = RFR + βstock (Rmarket – RFR) = 6% +β (8.8%)
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Yajing Cao 1.Current Market Evaluation of Apple Inc. [pic] [pic] (Charts from Yahoo Finance and YCharts) From the charts above‚ we can find that Apple’s current PE is 16.7‚ much lower than its past five years’ average 23.32. Also‚ its PEG Ratio is 0.64‚ which is a very healthy one. What’s more‚ take Apple’s some key advantages into account: (1) Apple has a strong brand name‚ loyal customer base‚ and defensible installed base. (2) iPod is still a major traffic and revenue driver for the
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Background Information of IOI Corporation Berhad The group’s principal activity is manufacturing of oleo chemicals‚ palm oil refinery and palm kernel crushing. However‚ IOI divide their group activities into 5 segments; Plantation‚ Property Development‚ Property Investment‚ Resource-based Manufacturing‚ and Other operations segment. Plantation segments focus in cultivation of oil palm and rubber and processing of palm oil. Property Development is engaged in the development of residential and commercial
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Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Whether to issue dividends‚ and what amount‚ is determined mainly on the basis of the company’s unappropriated profit (excess cash) and influenced by the company’s long-term earning power. When cash surplus exists and is not needed by the firm‚ then management is expected to pay out some or all of those surplus earnings in the form of cash dividends
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commonly used analysis by both the market and investors to understand or rate a stock is the price/earnings‚ or PE‚ ratio. It exemplifies the current price of a stock divided by a company earned for every share outstanding over the past year. When the PE ratio rises above the benchmark level‚ the investors are optimistic of the company’s earnings per share to rise. However‚ a low P/E ratio often means the market expects earnings to fall‚ which could trigger a decline in the stock price.
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CAPITAL IQ 202 M&A TRANSACTION SCREENING January 31‚ 2012 © Margolis Market Information Lab CIQ202 PREREQUISITES • Capital IQ 101 – Tearsheets – Screening – Formula Builder – Excel Plug-in January 31‚ 2012 © Margolis Market Information Lab CIQ202 AGENDA • Mergers and Acquisitions • • • Valuation Capital IQ Screening Applications of Capital IQ Screening January 31‚ 2012 © Margolis Market Information Lab CIQ202 MERGERS AND ACQUISITIONS • Mergers and
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