Use the following information on Disney to answer the case questions.
What is the Constant Growth Model, the Multi-Stage Growth Model, Discounted Dividend Model, and Market Multiples Approach?
In: Finance
A and B were in partnership sharing profit and losses in the proportion of three fourth and one fourth respectively. Their balance Sheet stood as follows on 31st December 2003.
LIABILITIES …….…….…. Rs.
Creditors …………………....... 37,500
Capital Account
A ……………………………......… 40,000
B…………………………......……. 10,000
TOTAL ……………….…… 87,500
ASSETS …………….….. Rs.
Cash at bank ………... 22,500
Bill receivable……..…. 3,000
Book debts…………..… 16,000
Stock………..………….. 20,000
Furniture………..…….. 1,000
Building………..…….... 25,000
TOTAL……………... 87,500
They admitted C into partnership 1st January 2004 on the following terms:
The C pays Rs. 10,000 as his capital for 1/5 share in the future profits.
That goodwill for Rs. 20,000 is raised in the books of the new firm.
That stock and furniture are reduced by 10% and that a 5% provision is made for likely bad debts.
That the capital Accounts of A and B are readjusted on the basis of their profit sharing ratios.
Required:
Pass the necessary journal entries and give the ledger Accounts and opening Balance Sheet of the new firm.
In: Other
Summary: Key Points in the Article Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by US$6.40, or nearly two percent, on the news. Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. WhileJobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm. Question 2 Marks “. Do you agree with the decision taken in the above case? What decisions you will take to improve the stock price of Apple Computers in this situation?
In: Finance
Question 2: JB Communications Ltd is considering an expansion of its existing operations. The following details of the company as at 30 June 1999 are provided for your information. • Debt $10 million (book value) 90-day bank bills with a current interest rate of 6% p.a., maturing 30 September 1999. $20 million (book value) 5-year bonds with an interest rate of 10% p.a. payable on 30 June and 31 December each following year. The face value of each bond is $200,000 and the bonds will mature on 30 June 2004. The required return is 9% p.a. • Equity Ordinary shares to the market value of $20 million. The company income tax rate is 36 cents in the dollar, with franking levels of 80%. Return on the market portfolio is currently 13% p.a., the risk free rate is 7% p.a. and the company’s beta is 0.8. The dividend yield is 5% in the market. Calculate the WARR for the company.
In: Finance
2. Suppose a British investor is expected to receive payment of 10,000 dollars ($) in twelve months from a U.S. bank. The annual interest rate in dollar deposit is 5% and the annual interest rate in pound deposit is 10%. If the present exchange rate is 0.50 pound per dollar deposit and interest parity holds, then.
(a) How many pounds does the British investor expect to receive at the maturity date of his U.S. investment?
(b) How many pounds were initially invested? Fully explain all your answers.
3.
(a) Suppose a computer sells for US$1,200 in the U.S. and for £855 in London. If the exchange rate is £0.65 per dollar, is there any arbitrage (profit opportunity)? Explain
(b) If the Canadian dollar price of one Euro was C$1.30 in 2003 and the exchange rate adjusted to 0.85 Euro per C$ in 2004, did the Canadian dollar appreciate or depreciate against the Euro. Explain.
In: Economics
Use the following information on Disney to answer the case questions.
◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018
◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.
◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.
◼ Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021. ◼ Disney’s peers in media networks trade at 25.5 times their current year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.
◼ Assume the expected return for Disney’s stock is 6.9%.
What is Disney stock’s intrinsic value using Multi-Stage Growth Model
In: Finance
In: Finance
Sales of roof material, by quarter, since 2005 for Carolina Home Construction Inc. are shown below (in $ thousands).
| Quarter | ||||||
| Year | I | II | III | IV | ||
| 2004 | 210 | 180 | 60 | 246 | ||
| 2005 | 214 | 216 | 82 | 230 | ||
| 2006 | 246 | 228 | 91 | 280 | ||
| 2007 | 258 | 250 | 113 | 298 | ||
| 2008 | 279 | 267 | 116 | 304 | ||
| 2009 | 302 | 290 | 114 | 310 | ||
| 2010 | 321 | 291 | 120 | 320 | ||
1. Determine the typical seasonal patterns for sales using the ratio-to-moving-average method. (PLEASE DONOT USE EXCEL. PLEASE SHOW ALL MANUAL WORKINGS HOW DID YOU GET ANSWER IN THE TABLE)
2. Deseasonalize the data and determine the trend equation. PLEASE DONOT USE EXCEL. PLEASE SHOW ALL MANUAL WORKINGS HOW DID YOU GET ANSWER IN THE TABLE)
3. Project the sales for 2012, and then seasonally adjust each quarter.
In: Advanced Math
A ski company in Vail owns two ski shops, one on the west side and one on the east side of Vail. Ski hat sales data (in dollars) for a random sample of 5 Saturdays during the 2004 season showed the following results. Is there a significant difference in sales dollars of hats between the west side and east side stores at the 10 percent level of significance?
| Saturday Sales Data ($) for Ski Hats | ||
| Saturday | East Side Shop | West Side Shop |
| 1 | 572 | 590 |
| 2 | 440 | 784 |
| 3 | 613 | 624 |
| 4 | 550 | 530 |
| 5 | 459 | 570 |
(b) State the decision rule for a 5 percent
level of significance. (Round your answers to 3 decimal
places.)
Reject the null hypothesis if tcalc < ( ) or
tcalc > ( ).
(c-1) Find the test statistic tcalc. (Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)
tcalc ( )
In: Statistics and Probability
Have you ever noticed that, when you tear a fingernail, it tends to tear to the side and not down into the finger? (Actually, the latter doesn’t bear too much thinking about.). Why might this be so? One possibility is that fingernails are tougher in one direction than another. A study of the toughness of human fingernails compared the toughness of nails along a transverse dimension (side to side) compared with a longitudinal direction, with 15 measurements of each (Farren et al., 2004). The toughness of fingernails along a transerve direction averaged 3.3 kJ/m2, with a standard deviation of 0.95, while the mean toughness along the longitudinal direction was 6.2 kJ/m2, with a standard deviation of 1.48 kJ/m2. a) Test for a significant difference in the toughness of these fingernails along two dimensions. b) As it turns out, all of the fingernails in this study came from the same volunteer. Discuss what the conclusion in part (a) means. What would be required to describe the fingernail toughness of all humans?
In: Statistics and Probability