New Economic School
Module I, 2007
Macroeconomics I
Benjamin Bental
1. General
The purpose of this module (and the next) is to provide a very basic introduction into
macroeconomics. The emphasis is on the issues macroeconomists deal with, rather
than meth
Equity Valuation Problems
Problem 1 (stable growth)
Assume that you have a stock index trading at 700 and that dividend yield of the stocks in the
index is 5%. Earnings and dividends can be expected to grow at 4% forever. The required return
on equity is
:
2
[email protected]

1
, 2009 .
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VEN
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TUR
GRC
FRA
CHN
ARM
NZL
MEX
GBR
TZA
CAN
KEN
PHL
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SEN
BOL
TJK
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FIN
ROM
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CIV
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POL
GEO
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Problem set for presentation:
Problem 1
Based on current dividend yields and expected growth rates, the expected rates of return on
stocks A and B are 11% and 14%, respectively. The beta of stock A is .8, while that of stock B is
1.5. The T bill rate is
Problem set for presentation:
Problem 1
Orb Trust (Orb) has historically leaned toward a passive management style of its portfolios.
The only model that Orbs senior management has promoted in the past is the capital asset
pricing model ( CAPM). Now Orbs m
Problem set for presentation:
Problem 1
Consider a portfolio that offers an expected rate of return of 12% and a standard deviation
of 18%. Tbills offer a riskfree 7% rate of return.
What is the maximum level of risk aversion for which the risky portfol
Problem set for presentation:
Problem 1
A pension fund manager is considering three mutual funds. The first is a stock fund, the
second is a longterm government and corporate bond fund, and the third is a Tbill money
market fund that yields a rate of 8%
Problem set for presentation:
Problem 1
The market consensus is that Analog Electronic Corporation has an ROE = 9%, has a beta
of 1.25, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's
earnings were $3 per share. The a
Problem set for presentation (You need financial calculator or Excel):
Problem 1
Assume you have a 1 year investment horizon and are trying to choose among three
bonds. All have the same degree of default risk and mature in 10 years. The first is a zeroc
Problem set for presentation:
Problem 1
The yield to maturity on 1year zerocoupon bonds is currently 7%; the YTM on 2year
zeros is 8%. The Treasury plans to issue a 2year maturity coupon bond, paying coupons once
per year with a coupon rate of 9%. The
National Research University
Higher School of Economics
Faculty of Economic Sciences
Course: Valuation of the company
JetBlue Airways
IPO Valuation
Moscow, 2015
Contents
The IPO Process.
Main value drivers and growth drivers of JetBlue Airways.
DCF Valuat
Description of the apartment data.
For our valuation project we find 20 apartments for rent, 15 apartments for sale that are comparable to the
apartment in the case condition.
We took following parameters into account:
Building is located in Moscow, Nort
Financial Econometrics
Assistant Prof. Dr. Sergey V. Gelman
Email: [email protected]
Office 4325
Office hours: from October 19,
Tuesdays, 3 p.m. 4 p.m.
Class teacher: Alexander Kostrov
Email: [email protected]
Outline of the course
1. Introductio
3. Predictability of asset returns (continued)
Dr. Sergey Gelman
Lecture #7
Reading : RT, Ch. 4.1.4; JH, Ch.22; ET, Ch. 6
Sergey Gelman (ICEF)
FE
L7
1 / 24
What do we learn?
Equity index returns at monthly frequency are not really predictable using
conven
2. Event studies
Overview
Reading: CLM, Ch. 4; Papers mentioned
Objective of event studies
to measure the impact of an economic
event on the value of a firm
Events:
M&A
Public Offerings (IPOs, SEOs)
Earnings announcements
Macro announcements
Changes in re
CLASS 1. DEBT VALUATION PROBLEMS
Methodology intro:
a. Discuss different types of bonds:
i.
Different cash flow (CF) patterns
ii.
Option like characteristics. Are they important (valuable)?
iii. How do bond characteristics influence value and overall retu
Corporate finance
Equity Valuation
April 2015
Differences of equity and debt
Stock (equity)
Excepted cash flows:
Dividends
Capital gains
Dividend is not an expense
A i esto a t fo e a age s
to pay dividends
An investor can sell
Does t ha e atu ity
Corporate Investment Decisions
Corporate Finance
Spring 2015
Lecture structure
Why do we invest in real markets?
Basic assumptions
Project definition
Decision rules for two questions:
Is a project efficient?
A e o o ists set of rules (NPV, IRR, PI)
Les
CORPORATE FINANCE
Finance department
Nikita Pirogov
Room#4236
[email protected]
want to quit?
I o t ask hy
Do that quickly
April 21 is deadline for that
After ards I o t gi e y appro al
Forms of current and final control
Final grade components
Classwo
Capital budgeting problems
Problem 1 (cash flow construction and NPV, IRR&PI) Large XYZ Company that specializes in balls
production for different games football, tennis, golf decided to launch a new project (colored
bowling balls production) in 2011. Mar
We use "Price Indices" for Eurostat index.
After that, we founded RCN (reproduction cost new) for assets using indirect method of the Cost
approach:
But we can not use Indirect method to all assets, to determine RCN for some assets we use
Direct method:
1
'Current Ratio'
The current ratio is mainly used to give an idea of the company's ability to pay back its liabilities
(debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts
receivable). The higher the current ratio,
Solution and marking scheme
Question 1.1. First, it is needed to estimate growth rate:
g=ROERR
It is easy to see that
Sales
Sales
Equity
Sales
Total Assets
Total Assets
Sales
Total Assets
ROE=
=
=
=0,11,61,1=17,6
Equity
Total Assets
Equity
Therefore,
g=
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