NETFLIX (i) Estimate the stock beta for a company. Select a publicly traded company (preferably large...

NETFLIX

(i) Estimate the stock beta for a company. Select a publicly traded company (preferably large firms) and download the monthly closing prices for 5 years into Excel. Choose a market index (e.g. S&P 500) and download the monthly closing values for 5 years into Excel. Calculate the monthly returns for the selected company and the market index. Using the regression function in Excel, regress the stock return on the market index return.

(ii) Compare and contrast the stock beta you estimated with two other sources (e.g. Yahoo! Finance, CNBC, etc.).

Expert Solution

Solution

Part A)

Microsoft is selected as a company and 5 year monthly data has been downloaded from yahoo finance source

The return has been calculated using LN function in excel i.e. Return = LN ( this month / previous month )

Regression is performed using Microsoft return as the dependent variable and S&P return as an independent variable.

Value of Beta comes out to be 0.99964 (Given in excel image under variable 1 coefficient )

Part B ) Beta = 1.32 Yahoo finance

Beta = 1.05 CNBC

Beta = 0.999 Our calculation

So our calculated beta is less than the beta taken from these two sources. This may due to their methodology of selecting the data and time period

jeff jeffy answered 1 year ago

Select a publicly traded company and a publicly traded, large partnership. Analyze how they are treated...

Select a publicly traded company and a publicly traded, large partnership. Analyze how they are treated for tax purposes. Describe the differences in taxation of their income, formation, dissolution, and liquidation, as well as the responsibilities borne towards creditors and taxing authorities by partners, shareholders, partnerships, and corporations. As a CPA in public practice, which type of business organization would you advise a client to adopt among sole proprietorships, various forms of partnerships, and various forms of corporations? MAKE A...

In practice, how to find beta for a publicly-traded stock?

Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on...

Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the NASDAQ to analyze. Please note that it is usually easier to find more recent information on larger or well-known companies. The analysis in your essay should answer the following questions: 1. Why did you choose to analyze this company? 2. What were the opinions of some of your referenced articles on this stock as an investment? 3. Please note that it is best...

Select a successful publicly traded company that you are interested in and use the Internet to...

Select a successful publicly traded company that you are interested in and use the Internet to research its use of inventory management systems and technology. Examine the inventory management system of the selected publicly traded company. Determine the key ways that inventory management systems and technology have given the selected company a competitive advantage in the marketplace. Evaluate the efficiency of two common inventory control systems. Determine the ways in which they provide a firm with a competitive advantage in...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth. please beware of plagrism or include the proper citations

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? What would you do if you encountered an unethical situation at work? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

Select a publicly traded company and access the company's most recent annual report (select the "Investors"...

Select a publicly traded company and access the company's most recent annual report (select the "Investors" menu item). Locate the notes to the financial statements and identify the information topics disclosed in these footnotes and explain the reasons for disclosure.

Select a publicly traded company (Mcdonalds) and access the company's most recent annual report (select the...

Select a publicly traded company (Mcdonalds) and access the company's most recent annual report (select the "Investors" menu item). Locate the notes to the financial statements and identify the information topics disclosed in these footnotes and explain the reasons for disclosure. Please share the link to the report.

Question

NETFLIX (i) Estimate the stock beta for a company. Select a publicly traded company (preferably large...

Solutions

Expert Solution

Related Solutions

Select a publicly traded company and a publicly traded, large partnership. Analyze how they are treated...

In practice, how to find beta for a publicly-traded stock?

Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on...

Select a successful publicly traded company that you are interested in and use the Internet to...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges...

Select a publicly traded company and access the company's most recent annual report (select the "Investors"...

Select a publicly traded company (Mcdonalds) and access the company's most recent annual report (select the...