| 2014 | | XXXXX11 | [TOMBSTONES] | | 1. MSFT Notes: a. Why is MSFT raising money? b. Is this paper really cheap?
These RIAs helped DFA offer its high net worth investors the same low cost small and microcap investment vehicles, while making these investments relatively more liquid in the secondary market. Furthermore, in the late 90s, when the tax laws became fairly harsh on individual investors, DFA started offering tax managed funds to lower the overall tax burden on the gains from those funds. However, compared to DFA’s other funds, these tax managed funds were relatively more challenging for DFA to manage, as DFA had to continuously balance the funds while considering tradeoffs between tax benefit and transaction costs to determine net benefit to the portfolio. 5) Explain the DFA small and value
Bonds are not better than GIC(s). Bonds offer lower interest rate, so low that it is better to just invest our money in a TD Savings Account. Mostly investors do not even consider Bonds as there more much better investment opportunities. GIC(s) offer more interest rates, more options and so there is more demand for GIC(s). 7) What is the most popular age group for buying GICs?
What is the payback period statistic? What is the acceptance benchmark when using the payback period statistic? This is how long it takes to receive back the money of an investment. It does not use the time value of money, it does not work with variables of cash flow. It is a good choice when an investor needs their return in a certain time period.
Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points) A disadvantage of these is they lower the cost for any consumer and will encourage consumption, if they are not properly treated, they could have no purpose. Describe at least two negative outcomes of having too little money and credit in the economy.
The constant hurdle rate results in a flat line and doesn’t correlate risk with return. With nearly $2 billion being invested in upcoming capital projects, the discount rate to be used within the firm needs to be more accurate, account for risk, and not destroy shareholder’s value. Currently the firm is not accurately assessing their future. Telecommunications Services is returning capital below the corporate hurdle rate and Products & Systems is above the rate, but the firm is not factoring in riskiness of the segments individually. Question 2 [pic] Use CAPM model to estimate their cost of equity.
("Store Wars," n.d., Big store, business practices section, para. 1).The low prices may be great for the economy, but that's about all walmart is doing for America. For people who work at Walmart, in order to make ends meet, they usually have to work at two different jobs. Their significant other usually has to work, too. Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010).
Economic recession has some impact on the drop in sales. With less disposable money, the consumers not only tend to spend less money in purchasing goods, but also become more economical in using cleaning products, replenishing those products at a slower rate than they did before the recession. Besides the economic downturn, the competitive environment provides another impact on the sales. Since more and more private-label products are penetrating the cleaning market with a lower price, the branded products are losing their market share. What’s more, even among the branded products, CleanSpitze has a relatively high price, which makes situation worse.
How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that present a clear picture of Aurora’s financial condition. Exhibit 1 shows Income statement of Aurora Textile Company for the fiscal years 1999-2000. As mentioned in the introduction, Aurora had remained main efficient plants by reducing inefficient operations, but its sales show downward trend and in 2002, it decreased about 40% to compare performance in 1999. Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets.
Ahold can better spread his risk. b) ING has a high equity beta and a low asset beta. They had to have a lower asset beta because they can’t get customers if they have a big risk to fail. A bank has to be reliable. Vraag 4 a) Debt beta measures the sensitivity of the return on debt to the returns of the market.