Corporate Finance 3301!
Section 07 !
Ratios Tell a Story !
#1 Fast Food !
Since their net PP&E is very high i think it is a fast food return at since they wold own a
lot of property which they built their stores. The
The second selection criteria: Beta
The beta ( or beta coefficient) indicates whether the investment is more or less
volatile than the market. In general, a beta less than 1 indicates that the investment
is less volatile than the market, while a beta more
Question: A description of the random method you used to select the stocks in
your portfolio. Make sure you describe the method of random selection in a
manner that enables the reader (me) to replicate what you did.
Random method: Find a list of all compa
a brief justification for why anyone would (rationally) randomly choose stocks for
their long-term portfolio.
Answer:(Quote from Chapter Eleven of the book cfw_Bodie, Zvi, Alex Kane, and Alan
Marcus, Investments, Tenth edition, McGraw-Hill, 2
Portfolio Selection: Top Down Investing
You are to choose five (5) stocks for your portfolio. For this project, you will explore and refine your
strategies for selecting stocks, by building a portfolio using a top down strategy; one that first assesses
Optimal Capital Structure under
Corporate and Personal Taxation
Outline of Presentation
of the model
leverage irrelevancy theorem
shield substitutes for debt and interior
costs and horse-a
Formula Sheet Finance 6202 (Stats portion)
X i X
()(Y iY )/( n1)
Cov ( X ,Y )=
X i X
Cov (X ,Y )
S X SY
Is correlation coefficient significant?
Total Variation = Unex
NBER WORKING PAPER SERIES
CORPORATE FINANCING AND INVESTMENT
DECISIONS WHEN FIRMS HAVE INFORMATION
THE INVESTORS DO NOT HAVE
Nicholas S. Majiuf
Working Paper No. 1396
NATIONAL BUREAU OF ECONOMIC RESEARCH
1050 Massachusetts Avenue
Nike, Inc: Cost of Capital
is the WACC and why is it important to estimate a firms cost of capital?
The WACC is the weighted average cost of capital which os the cost
Investment Detective Case
1. Can you rank the projects simply by inspecting the cash flows?
We cannot rank the companies based on their cash flows since we need to take into
account time v
Corporate Finance 3301
The problem in the case is that Mr.Clarkson does not have enough money to
finance and grows business and he has reached the loan ceiling that his bank
imposed. This is the k