Reference no: EM131277107
State the names of your teammates and make sure to cc the email to each of them when submitting your case analysis to avoid the 10-point penalty.
Can you use Ameritrade's information to estimate the WACC? Why or why not?
How you found the comparable firm? Be specific with the process and variables used to identify the comparable firm.
Why did you use equity and dividends received (rather than the original price and dividends provided) to calculate capital gains yield and dividend yield?
In the last 5 years, how is your company's total risk, systematic risk, and average return relative to the market average? How do you measure total risk and systematic risk?
Why is value-weighted average return used as the proxy for the market average?
In CAPM, what is the rf rate used and why did you choose that particular rate instead of the t-bill rate? Why is annual market return used in the CAPM return estimate, rather than monthly return?
Are you able to use one of the dividend models to estimate the cost of capital? If yes, which dividend model is used and why?
Find annual dividend and growth rate of the annual dividends.
Find the Dl, P0, and avg. dividend growth rate to get the cost of equity using the appropriate dividend model. Next, use Market Model. State the model's equation, run the regression to get the outputs.
Should both intercept and beta be used in the cost of equity calculation? Why or why not? Be aware of the monthly to annual adjustment when estimating the cost of equity.
Is your camp beta similar to the beta from the market model?
Compare the three cost of equity estimates. Are they similar? If one of them is significantly different from the rest, it may not be reliable. Find reasons to justify why that particular model isn't reliable.
Of the two similar cost of equity estimates, what do you do from here?
To find the WACC, we also need to find the Rd and the capital structure weights. ***While the Rd of the comparable firm is given, use M&M proposition II to explain why we should use the Rd and capital structure weights of the comparable firm to calculate the WACC, rather than those of Ameritrade!
When it comes to estimating the capital structure weights, should you use book value or market value? Why?
Attachment:- Amertrade_Case.xls
Research project or simply an initiative
: How do you decide if something should be a research project or simply an initiative? Please give an example of a quality improvement project or initiative as well as an example of a possible research project or study that would involve an administ..
|
Why good faith effort strategy is interesting
: Why good faith effort strategy is interesting? Why does Vanderbilt form an alliance with Scott? Is it successful? How the polical churning in the re-entry program ? Compare and contrast Strategic Planning, Strategic Thinking and how they impact and s..
|
Determine the money lost through the roof
: If the house is heated by a furnace burning natural gas with an efficiency of 85 percent, and the unit cost of natural gas is $0.60/therm (1 therm = 105,500 kJ of energy content), determine the money lost through the roof that night during a 14-ho..
|
Compare and contrast the experiences of nadine naber
: discuss how bodies can serve as battlegrounds.compare and contrast the experiences of Nadine Naber.
|
Can you use ameritrades information to estimate the wacc
: Can you use Ameritrade's information to estimate the WACC? Why or why not? How you found the comparable firm? Be specific with the process and variables used to identify the comparable firm.
|
Understanding of organizational behavior help ceo
: 1. How might an understanding of organizational behavior help CEO VineetNayar lead his company? Be specific. How about first-line company supervisors? Again, be specific.
|
Learned about strategy and competitive dimensions
: Select the company and submit a brief write up about it: history, vision/mission, and organization structure. So far we have learned about strategy and competitive dimensions and the trade-offs and forecasting the demand for goods and/or services and..
|
Determine the rate of heat loss from the collector
: Consider a flat-plate solar collector placed horizontally on the flat roof of a house. The collector is 5 ft wide and 15 ft long, and the average temperature of the exposed surface of the collector is 100°F.
|
Stanford prison experiment documentary
: After watching the Stanford Prison Experiment documentary, spend some time reflecting on the experiment and your reactions to it. Then, answer the following questions.
|