HOW ARE MORTENSENS
ESTIMATES OF MIDLANDS
COST OF CAPITAL USED?
Kieran Allenby
Uses of Mortensens estimates
Mortensens estimates had four uses
Asset appraisals for capital budgeting and
financial acc
AC1117
Lecture 22 and 23: Cost of Capital and
Capital Budgeting Implications of CAPM
Celine McInerney
The Cost of Equity Capital
Firm with
excess cash
Pay cash dividend
Shareholder
invests in
financia
AC1117
Lecture 15+16: The Efficient Frontier
Celine McInerney
Indifference Curves
Draws on the concept of utility to present alternative tradeoffs between risk and return each equally acceptable to t
AC1117
Lecture 11: Portfolio Theory
Celine McInerney
Risk and Return
As discussed previously, investors will seek a
higher level for return for investments with
higher risk
How do investors manage t
AC1117
Lecture 5: Stock Valuation Valuation in
Practice
Celine McInerney
Key Concepts and Skills
Valuation in Practice
NAV
Comparable Companies
Precedent Transactions
Premiums Paid Analysis
DCF
LBO
2
AC1117
Lecture 22 and 23: Efficient Markets
Hypothesis
Celine McInerney
Insider Trading
Raj Rajaratnam, the billionaire founder of Galleon Group, and former
directors at a Bear Stearns Cos. hedge fund
AC1117
Lecture 4: Stock Valuation P/E Ratios
etc
Celine McInerney
Key Concepts and Skills
Measures of Return on Investment
P/E Ratios
PEG Ratio
How to interpret the financial press
2
Measures of Retur
AC1117
Lecture 3: Stock Valuation Part 2
Celine McInerney
Key Concepts and Skills
Present Value of Growth Opportunities
Trade-off Between Dividends and
Reinvestment
Free Cash Flow (FCF)
2
Valuing C
AC1117
Lecture 3+4: Valuation Stock Valuation
Using Dividend Valuation Models
Celine McInerney
Overview
Topics Covered
How Common Stocks are Traded
Calculating the Price of Common Stock
How To Valu
AC1117
Lecture 9+10: Portfolio Theory Risk
Measurement
Celine McInerney
Key Concepts and Skills
Know how to calculate the return on an
investment
Know how to calculate the standard deviation of
an i
A
HPR
B
HPR
C
HPR
Calculate the following for each of the 3 ass
Mean
Period 6.00% 5.00% 10.00%
Period -3.00% 7.00% 14.00%
Period 15.00% 20.00% 24.00%
Period 10.00% 11.00% -20.00%
variance
Std dev
Calc
AC1117
Lecture 14 A: Optimal Portfolio Selection
Celine McInerney
The Return and Risk for Portfolios
Scenario
Recession
Normal
Boom
Expected return
Variance
Standard Deviation
Stock Fund
Rate of
Squar
AC1117
Lecture 19 and 20: CAPM 2
Celine McInerney
Summary of Terminology
E(RA) = expected return on asset A
A = standard deviation of returns on asset A
A2 = variance of returns on asset A
AB = covari
AC3025 Pan-Europa Foods Case Study
Group: Group 1
Students: Ian Murray, David Cronin, Sen Ring, Denis Clogan, Zhiyang Zhou, Anthony Healy
Student Number: 113426782, 113449582, 113389771,112387106, 115
StudentCity.com
An Equity Harvesting Case Study
Mario Ricciardelli
37 year old entrepreneur
Married father of three
16 years experience
CEO and President of StudentCity.com
Progression of the Busi
StudentCity Case
Study
Sean Ring - 113389771
Stephen Sinclair - 113465408
Cliona Spillane - 113434018
Emer Wiley - 113436088
Zhiyang Zhou - 115107795
John OKeeffe - 113427498
INTRODUCTION
This case st
Unilever Group
Board Presentation
SWOT Analysis
Strengths
Quality Product
Large Market Share of Superpremium Ice Cream
Social Consciousness
Steady Sales
Enthusiasm for Innovation
Weaknesses
Over-relia
Company Overview
Ben & Jerry's Homemade, Inc., the Vermont-based ma
nufacturer of ice cream, frozen yoghurt and sorbet, w
as founded in 1978. It soon became popular for its inn
ovative flavours, made
Economic
1. Increasingly demand
2. Lower oil prices
3. Long-term contracts
4. Most investments from private sources
5. Other countries initiated smart grid rollouts
6. Predict that global smart grid m
AC6010 - Boeing Group Assignment (5 marks)
Submit In Class 24th October, 2017
Boeing 7e7 Case Study Cost of Capital
You are required to submit 2 typed sheets with:
a) Use the CAPM to estimate Boeings
AC1117
Lecture 18: CAPM 1
Celine McInerney
Introduction to the CAPM
Portfolio theory deals with selection of optimal
portfolios for individual investors
Capital market theory deals with an
equilibri
AC1117
Lecture 21: CAPM 3
Celine McInerney
CAPM What is it All About?
At the heart of CAPM is the idea that the returns on a financial asset
increase with risk
The breakthrough of CAPM was to define r