Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. Pirm Robot Middlaby's National Presto Nevell Branda Whirlpool Beta 0.94 1.89 Asset beta 0.14 1.09 1.79 Debt (8 millions) 80 762 D 11,943 4,520 Market Value of Equity 3,240 7,510 849 26,770 14,260 a. Estimate an asset beta for Sinaloa Appliance. Note: Round Intermediate calculations and final answer to 3 decimal places.
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- Triano Train Transports shows the following on their most recent balance sheet: Current Assets: 1871Total Liabilities: 1994Inventory: 458Net working Capital: 1111Total Assets: 3007Total Equity: 1636Total Debt: 2602Earnings per Share: 3.22Market Value: 60.03 You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it and put the number in the answer.For the following four IPOs, please find the total amount raised, the amount that went to the firm, and the amount that went to the underwriters/investment banks, and the gross spread. This information is available on the SEC Edgar database. Total S Amount S Raised by the SAmount Paid to S Offer S Bid Gross Raised Investment Banks Price Price Issuer Spread % Wingstop Shake Shack Alibaba Wingstop3. Below is a snapshot of some information about Microsoft Corporation from Yahoo! Finance on 10/16/2019. B) What is the Microsoft stock price and the market cap? C) Based on the information you collected in question (1), what is the total number of shares outstanding for Microsoft? (Hint: Market cap is the short name for “Market capitalization”. It represents the market value of a company’s total outstanding shares. It is equal to the stock price per share* total number of shares outstanding). D)What is Microsoft dividend payment and dividend yield?
- Tjay-Calling My Phone Eruder Functions: X + nterface/acellus_engine.html?ClassID=464977615 What is the rate of return when 30 shares of Stock A, purchased for $30/share, are sold for $1100? The commission on the sale is $6. Rate of Return = [?] % Give your answer as a percent rounded to the nearest tenth. right © 2003-2023 International Academy of Science. All Rights Reserved. Enter3. Using your iphone, you noticed that IBM was trading at a bargain price, so you decided to purchase 100 shares of stock that is traded on the New York Stock Exchange using your primary stock trading app. What kind of transaction was this? Primary market Secondary market Futures market Private Placement 4. P&G reported the following information for its fiscal year end: On net sales of $51.4 billion, the company earned net income after taxes of $6.5 billion. It had cost of goods sold of $25.1 billion and EBIT of $9.8 billion. Using the information in question 3, calculate the gross margin Using the information in question 3, calculate the operating margin (EBIT margin) Using the information in question 3, calculate the net profit marginBased on five years of manthiy data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.24 11.00 % 0.67 Ford 0.13 13.0 0.20 Anhauser Busch 0.16 6.40 0.0 Merck 0.06 10.20 0.60 Sa S00 0.00 4.30 1.00 a. Compute the beta coefficient for each stock. Do not raund intermediate calculations. Round your answers to three decimal places. Intel: 5.091 X Ford: 0.538 X Anheuser Busch: Merck: 2 x
- Adobe is a software company that creates the most innovative creativity apps. Recently their software has become cloud-based. Their price to book ratio is 1.67 and they currently have 1,000,000 shares outstanding. Below you will find an excerpt from their balance sheet for 2019 Calculate the stock price using the price to book ratio. If their stock price is listed on the stock market at $9, should the stockholders sell or hold the stock? Critically discuss the price to book ratio in valuing stocks and provide an alternative method to see if a stock is undervalued or overvalued.You have recently been appointed as the investment analyst of Investalot (Pty) Ltd.You are given a table with a list of companies, their stocks and their possible payoffsfor every rand invested as follows:Stock Year 1 (R) Year 2 (R) Year 3 (R)Discovery Ltd 0.8 0.2 0.1Foschini Group Ltd 0.7 0.75 0.55Famous Brands Ltd 0.4 0.15 0.75Required:Using the Minimax regret method choose the stock that will minimise yourmaximum regret.You own shares in Yahoo that were purchased at a price of $25 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $30 per share. What will be your return if you tender your shares to Microsoft and the deal is completed? O A. 21% OB. 19% OC. 20% OD. 14%
- You are an investment adviser. One of your clients approaches you for your advice on investing in equity sharesof Alpha Company. You have collected the following data:Earnings per share last year $5.00Payout ratio 0.30Return on equity 0.30Cost of equity capital 0.25The company plans to increase the payout ratio to 40% from year 6.Required:i) Estimate the price of an equity share of this company using an appropriate dividend discount modeland advise your client whether they should buy a share of the company.ii) Your client is keen to know whether there are any positive growth opportunities from theirinvestment. Explain to your client the meaning of this concept using appropriate calculations.The Trinidad and Tobago NGL Limited (NGL), is one of the stocks listed in the Energy Sector on the local stock exchange. The company’s initial public offering (IPO) was in October 2015 and the company was listed for the first time on October 19, 2015; at an opening price of $20.00. Required: If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain or loss if he/she decided to sell the stock on June 25, 2021. When did this share trade at its highest price since its IPO? What was this price? If an investor who purchased shares at the IPO, sold his holdings on this day, what would have been his capital gain/loss? Based on your analysis in parts i) and ii), what do you garner about investing in the stock market? If an investor held NGL shares since its IPO, what is the total dividends per share that he/she would have received to date? Provide details by payment date. Date Open Close Change Change % Volume Traded June 25th 2021 18.17…Amy Tanner is an analyst for a US pension fund. Her supervisor has asked her to value the stocks of General Electric (GE) and General Motors (GM) Tanner wants to evaluate the appropriateness of the dividend discount model (DDM) for valuing GE and GM and has compiled the following data for the two companies from 211 to 2018. GE GM EPS ($) DPS ($) pay-out EPS ($) Ratio DPS ($) Year рay-out Ratio 2018 2.17 1.15 0.53 -68.45 1.00 -0.01 2017 1.99 1.03 0.52 -3.5 1.00 -0.29 2016 1.76 0.91 0.52 -18.5 2.00 -0.11 2015 1.61 0.82 0.51 4.94 2.00 0.40 2014 1.55 0.77 0.50 5.03 2.00 0.40 2013 1.51 0.73 0.48 3.35 2.00 0.60 2012 1.41 0.66 0.47 1.77 2.00 1.13 2011 1.27 0.57 0.45 6.68 2.00 0.30 For each of the stocks, do a critical analysis and suggest whether the DDM is appropriate for valuing the stocks.