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

Expert Solution

jeff jeffy answered 2 years ago

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...

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...

Find a publicly traded company that has treasury stock on its balance sheet. Provide a link...

Find a publicly traded company that has treasury stock on its balance sheet. Provide a link to the balance sheet in your post and explain the details of the treasury stock transactions based upon the amounts and disclosures found in the financial statements. Why do you think the company acquired the treasury stock? Do not choose a company that has already been reported on by one of your classmates. Participate in follow-up discussion by critiquing the posts provided by your...

Two publicly traded companies are direct competitors. One has a beta of 1 and the other...

Two publicly traded companies are direct competitors. One has a beta of 1 and the other has a beta of 1.2. What is beta and how can I use this information as one component of stock evaluation? Compare the betas of two competing companies (you choose) and share the results and analysis

1.Measuring Systematic Risk: Beta Coefficients The management of a publicly traded firm is interested in determining...

1.Measuring Systematic Risk: Beta Coefficients The management of a publicly traded firm is interested in determining the firm’s cost of equity capital using the security market line (SML) version of the capital asset pricing model (CAPM). Management has measured the weekly returns for the market (S&P 500), its own stock, and the risk-free rate. The returns were annualized. The annualized percentage returns for each of the last 20 weeks are provided. 1a. See data in Excel file provided with this...

Plastic Parts Co. is a publicly traded company. Its beta is 0.85. The market risk premium...

Plastic Parts Co. is a publicly traded company. Its beta is 0.85. The market risk premium is 11.5% and T-bills are yielding 2.2%. PPC just paid a dividend of $1.15 and its stock is trading at $22. Analyst consensus is that PPC dividends should grow at 6%. PPC has 20 million common shares outstanding. The firm has a $15 million bank loan that is held at the bank (the loan is not trading on a secondary market) at 6.25% APR....

How do the stock prices of publicly traded companies behave when corporate and/or financial restructuring (e.g.,...

How do the stock prices of publicly traded companies behave when corporate and/or financial restructuring (e.g., divestiture, rationalization) is involved? Please explain why by citing two real world examples, and if appropriate, clarify the circumstances that affect the stock price movement.

Explain the concept of an interest rate swap. Find an example of a publicly traded firm...

Explain the concept of an interest rate swap. Find an example of a publicly traded firm that used an interest rate swap. Provide detailed analytics on how the swap was used and how it benefited both firms involved. You should include amounts, time frames, and actual rates.

Which companies are publicly traded in the U.S. stock market, not diversified, and facing problems?

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...

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