Homework Solutions - Lecture 2
1. The value of the S&P 500 index is 1312.41 and the treasury rate is 1.83%. In a typical year, stock
repurchases increase the average payout ratio on S&P 500 stocks to over 4%.
a. Calculate the implied equity premium assumi
Suggested Problem Solutions
Investment Valuation Damodaran
Lecture 6 Relative Valuation
CHAPTER 17 FUNDAMENTAL PRINCIPLES OF RELATIVE VALUATION
1.
a)
The current P/E is based on earnings from the most recent financial year (which could
end at different da
Socit Gnrale
Societe Generale lost $7 billion over fraud made by one rogue trader. The case
was the biggest fraud in financial history. It hit the news on early of 2008. The scandal
of barings bank is nothing compared to this as it scaled 4x worse than th
Cross Section of Expected Stock Returns
Fama and French
Research Question
Are size and book to market ratio define the cross sectional variation in mean
returns of stock linked with market size, leverage, beta, book to market ratio
and earning price ratio
Henrikus Gerry Budiman
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Sumitomo Case
Sumitomo had losses just when Hamanaka was in charged. Trying to make up
for the losses, he deepen the problem, by taking huge position in copper commodity
futures on London metal exchange. Trying to make u
Security Analysis
Kino Indonesia Tbk.
Investment Class
Lecturer: Kim Sung Suk
Written By:
Henrikus Gerry Budiman ( 00000010321 )
UNIVERSITAS PELITA HARAPAN
Executive Summary
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MOHANBIR SAWHNEY AND PALLAVi GOODMAN
The Hunger Games: Catching Fire
Using Digital and Social Media for Brand Storytetling
The Hunger Games film series began in 2012 with the launch of the first movie in
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Quiz 1 Solutions
1(a)
Both the ROE and its breakdown require you to compare income statement items to balance sheet items.
It is acceptable to do this either by using beginning of period balance sheet values or by using the average
of beginning and ending
Quiz 1
Security Analysis - Finance 40610
Professor Shane A. Corwin
Fall Semester 2007
Name _
Instructions: Please answer all of the questions completely and show all of your work. You may use a
formula sheet and a calculator. The quiz is worth 25 points.
Quiz 2 Solutions
Security Analysis - Finance 40610
Professor Shane A. Corwin
Fall Semester 2006
Instructions: Please answer all of the questions completely and show all of your work. You may use a
formula sheet and a calculator. The quiz is worth 25 point
Quiz 4 Solutions
Security Analysis - Finance 40610
Professor Shane A. Corwin
Fall Semester 2007
Instructions: Please answer all of the questions completely and show all of your work. You may use a
formula sheet and a calculator. The quiz is worth 25 point
Homework Solutions - Lecture 1
1. You are analyzing a company with the expected future cash flows shown below. Based on current
market prices, the market value of the firms equity is $1,962.9. The outstanding debt has both a
market and book value of $800.
Homework Solutions - Lecture 3
1.
Operating Lease Adjustments:
Future operating lease commitments for Nike, as listed in Nikes most recent 10K, are shown
below. Use this information to answer the questions below.
Year
2013
2014
2015
2016
2017
>2017
Total
Homework Solutions - Lecture 4
1.
Using the fundamental growth formulas we discussed in class and assuming the ROC
remains constant, estimate the expected growth in EBIT for Nike for the coming year. Be
sure to incorporate any necessary adjustments made i
Homework Solutions - Lecture 5
1. Nike's Stock Price:
a. As of May 31, 2012, Nike's shares outstanding include 90 million class A shares and 368 million
class B shares. In addition, Nike's stock price was $108.18, the firm's marginal tax rate was
24.8% (f
Homework Solutions - Lecture 6
1.
Starting from the Gordon Growth Model (the Dividend Discount Model with constant
growth), show how the P/E ratio is related to the fundamentals of the firm.
DDM :
Pt =
g
g
Dt +1
E ( Payout Ratio) Et +1 (1 Reinvestment Rat
SAMPLE MIDTERM EXAM SOLUTIONS
Finance 40610 Security Analysis
Mendoza College of Business
Professor Shane A. Corwin
INSTRUCTIONS:
1.
2.
3.
4.
5.
You have 75 minutes to complete the exam.
The exam is worth a total of 100 points.
Allocate your time wisely.