HW 6.xlsx - Module 12 3 4 5 27 28 29(Treasury shares are...

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Q12-3. Market beta represents how closely a stock performs as compared to the market, or S&P A beta of 1.0 represents a stock that perfectly correlates with the S&P, following the ups of the market. A beta of 0.5 represents a stock with lower volatility, not reacting as much in the market. A beta of 2.0 represents a more volatile stock, which has drastic changes i as the market goes up and down. Q12-4. Beta is a good measure of volatility and risk, however there are other factors that can aff a stock's riskiness, such as current or future events, management, and other internal fact Q13-5. Intrinsic values the quantitative value of a company based on analysis of its financial stat and current standing without factoring in any qualitative analysis. Market value is what p are willing to pay for a share of the company in the market which changes due to supply demand. E12-27. Sales 13.5 billion BB Debt 6.5 billion EB Debt 6.6 billion Interest Exp 0.227 billion Tax Rate 37% a. PTBC = Interest Expense/Avg Debt 0.0346564885 (billion) 34.6564885496 (million) b. CDC = Pretax borrowing rate x (1 - tax rate) 21.8335877863 (million)
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