If you bought a share of stock‚ what would you expect to receive‚ when would you expect to receive it‚ and would you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more confident that Company A’s cash flow will be close to their expected value‚ which should have the higher stock price? Explain. 3. When is a stock said to be in equilibrium? At any given time‚ would you guess that most stocks are in equilibrium as you
Premium Stock Stock market Share
Demise- Were there warning signs? Enron’s stock price traded around $62.72 per share at the end of April 2001. Do you think Enron was worth that much? Why or why not?‚ answer: In order value stocks one has to understand the possible future earnings of the company represented as earning per share. Since Enron has not quality financial representations‚ those figures are not easy to identify. Relying on big financial intuitions’ data we may come up with a stock value which would be a conservative
Premium Stock market Investment Stock
http://www.kch-aktiv.de Germany’s 1st Cross-Collegiate Stock Pitch Competition -Instruction Manual for participating Students- How to Pitch a Stock/Bond (A recommendation how to…) A) The Analysis B) The Research A) The Analysis: 1) State the name‚ ticker and price of the company. Key Financial Information should be presented in a table. Then give a brief company description. Also know how this stock has traded over the last year (use a stock price graph). ( Note: Bonds will differ from
Premium Stock market Stock Discounted cash flow
percent. 1. Calculate the value of the bond. 2. Calculate YTM Topic: Stocks 9) ABC Ltd paid a dividend of Rs 4 per share at the end of the year. It is expected to grow by 8 percent each year for the next 4 years. The market price of the shares is expected to be Rs 60 at the end of 4 years. Assuming 12 percent required rate of return of investors‚ at what price should the shares of ABC Ltd sell? 10) Blackburn and Smith common stock currently sells for $23 per share. The company’s executives anticipate
Premium Stock Investment Weighted average cost of capital
A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company’s shares (certificates of ownership). [1] This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. [2] In modern corporate
Premium Corporation Types of companies Public company
[pic] Functions of Stock Exchange - Main Functions In The Market Post : Gaurav Akrani Date : 11/01/2010 12:00:00 PM IST Comments (2) Labels : Economics 1 [pic] 1. Continuous and ready market for securities Stock exchange provides a ready and continuous market for purchase and sale of securities. It provides ready outlet for buying and selling of securities. Stock exchange also acts as an outlet/counter for the sale of listed securities. [pic] 2 [pic] 2. Facilitates
Premium Investment Security Stock market
EFFECTS OF STOCK SPLIT Introduction The purpose of this research paper is information retrieval regarding stock split practice in a modern stock market‚ its major reasons and valuation effects on the company’s financial position. According to the definition stock split is a method commonly used to lower the market price of a firm’s stock by increasing the number of shares belonging to each shareholder. Companies are able to split their stocks in any number of ways. The most common stock splits are
Premium Stock Investment Stock market
institution for the mobilization of finance from the surplus sectors to the deficit sectors. The development of capital market in Nigeria‚ as in other developing countries has been induced by the government. Though prior to the establishment of stock market in Nigeria‚ there existed some less formal market arrangements for the operation of capital market. It was not prominent until the visit of Mr. J. B. Lobynesion in 1959‚ on the invitation of the Federal government‚ to advice on the role the
Premium Economics Stock market Stock exchange
Treasury stock is when a corporation ’s issued stock has been bought back from the stockholders. Since a corporation cannot be its own shareholder‚ when the corporation purchases shares‚ those shares are NOT considered assets of the corporation. If we assume the corporation plans to re-issue the share‚ then those shares are held in the treasury and reported as a deduction in stockholders ’ equity. This is reflected in the balance sheet. Those with shares of treasury stock not only give up the
Premium Stock market Generally Accepted Accounting Principles Asset
required return for Encore stock? Ri = rf+β (rm – rf) =0.06 +1.1 (0.088) = 0.16 (2) What will be the new required return for Encore stock assuming that they expand into European and Latin American markets as planned? Rs =rf + β ( rm – rf) = 0.06 + 1.1 (0.1) =0.17 d) If the securities analysis are correct and there is no growth in future dividends‚ what will be the value per share of the Encore stock? ( Note: Use the new required return on the company’s stock here.) Po = Do (1+g)rs
Premium Stock Stock market Dividend yield