Electric Youth, Inc. (EY) is a publicly-traded firm that is the market share leader in perfume for teenagers. You are charged with estimating the cost of capital for the firm. The following market data on EY’s securities are current:

EY’s tax rate is 22 percent.

To do: estimate EY’s cost of capital. Show all work.

The average trailing PE ratio of publicly traded auto parts companies in the US is 20.0. You own a regional auto parts firm in the Northwest that is privately held and has no debt. In the last year, the firm earned $1.5 million.

You are looking to sell your firm to a private equity firm and are arguing the valuation of the firm should be 20 * $1.5 million = $30 million dollars.

• Why might this be a biased estimate of the value of the firm?
• What are one or two reasons why the estimate might be biased?

DB, Inc. is publicly traded with a stock price of $50 per share and 200,000,000 shares outstanding. It also expects to have total net earnings of $400,000,000. DB has $200 million in surplus cash that it wants to pay to shareholders. One option is to pay a special dividend. The other option is to repurchase stock with the cash. Evaluate the two alternatives below (ignoring any information effects):

a. What is the price of the company’s stock if it announces

i. a special dividend will be paid (with all $200 million)

ii. stock will be repurchased (totaling $200 million) on the open market

b. What is the EPS of the company if it

i. pays a special dividend with all $200 million

ii. repurchases stock totaling $200 million on the open market

c. What is the P/E ratio of the company if it

i. pays a special dividend with all $200 million

ii. repurchases stock totaling $200 million on the open market

d. Give two reasons why the company should choose to pay the special dividend and two reasons why the company should repurchase the stock.

Harrison​ Holdings, Inc.​ (HHI) is publicly​ traded, with a current share price of $ 40 per share. HHI has 30 million shares​ outstanding, as well as $ 61 million in debt. The founder of​ HHI, Harry​ Harrison, made his fortune in the fast food business. He sold off part of his fast food​ empire, and purchased a professional hockey team.​ HHI's only assets are the hockey​ team, together with 50 % of the outstanding shares of​ Harry's Hotdogs restaurant chain.​ Harry's Hotdogs​ (HDG) has a market capitalization of $ 816 ​million, and an enterprise value of $ 1.08 billion. After a little​ research, you find that the average asset beta of other fast food restaurant chains is 0.74. You also find that the debt of HHI and HDG is highly​ rated, and so you decide to estimate the beta of both​ firms' debt as zero.​ Finally, you do a regression analysis on​ HHI's historical stock returns in comparison to the​ S&P 500, and estimate an equity beta of 1.37. Given this​ information, estimate the beta of​ HHI's investment in the hockey team.

You are an investor who is looking for a place to invest your money. Previous investments have led you to feel that you are only interested in public, unregulated companies. You must choose a company that has not been used in previous course work, where you will now invest your money. Based on publicly available information you are to do a complete strategic analysis of the company.

Tips: Clothing companies do not make good choices because their reporting dates do not match standard reporting of economic data.

The result of your research will be your opinion, backed by your analysis, and use of evidence (use 6^th edition APA) and reasons why you would personally invest in this company as well as why people wish to be employed at this company. What makes it attractive to employees?

You may think of this as an evaluation of the firm for investment purposes. Ensure that you select a company that has data available for conducting the needed analyses.  Do due diligence right at the beginning of the course, so you do not run into issues right before the assignment is due.

You should, at a minimum, prepare: (1) a financial analysis comparing the firm to comparable peer firms; (2) a revenues forecast for the company using statistical and economic tools; (3) an industry analysis; (4) an evaluation of the company’s financial status and prospects; (5) a competitive analysis in which the company operates, and (3) leadership analysis (confidence in leadership). Make sure you identify, describe, and evaluate the overall strategy of the company and important to your assessment of the firm’s prospects, the functional strategies, i.e. marketing, technology, financial, human resources, manufacturing, etc. being employed.

You may choose to utilize these analyses and others as relevant in a traditional: Strengths, Weaknesses, Opportunities and Threats (SWOT) format, or choose another option.

Choose a company that has been publicly traded long enough (6 years) so that you have the quarterly data you need for the project analyses.
I chose HP company please provide me more informations and provided references.

Case Study: Establishing General Access Company’s Dividend Policy and Initial Dividend

General Access Company (GAC) is a fast-growing internet access provider that initially went public in early 2003. Its revenue growth and profitability have steadily risen since the firm’s inception in late 2001. GAC’s growth has been financed through the initial common stock offering, the sale of bonds in 2006, and the retention of earnings. Due to its rapid growth in revenue and profits with only short-term earnings declines, GAC’s common stockholder have been content to let the firm reinvest earnings as part of its plan to expand capacity to meet the growing demand for its services. This strategy has benefited most stockholders in terms of stock spilts and capital gain. Since the company’s initial public offering in 2003, GAC’s stock twice has been spilt 2-for-1. In terms of total growth, the market price of GAC’s stock, after adjustment for stock split has increased by 800% during the 7-year period 2003-2009.

As the GAC’s growth is becoming to slow, the firm’s CEO, Marilyn McNeely believes that its shares are becoming less attractive to investors. McNeely had discussion with the CFO, Bobby Joe Rook, who believes that the firm must begin to pay cash dividends. He argues that many investors value regular dividends and by paying them, GAC would increase the demand and price for its shares. McNeely decided that at the next board meeting, she would propose that the firm begin to pay dividends on a regular basis. McNeely realized that if the board approved her recommendation, it would have to (1) establish a dividend policy and (2) set the amount of the initial annual dividend. She had Rook to prepare a summary of the firm’s annual Earnings Per Share (EPS). It is given in the following table.

Rook indicated that he expects EPS to remain within 10% (plus or minus) of the most recent (2009) value during the next years. His most likely estimate is an annual increase of about 3%. After much discussion, McNeely and Rook agreed that she would recommend to the board one of following types of dividend policies:

1. Constant-payout-ratio dividend policy
2. Regular dividend policy
3. Low-regular-and-extra dividend policy

McNeely realizes that her dividend proposal would significantly affect future financing opportunities, costs and the firm’s share price. She also knows that she must be sure that her proposal is complete and fully educates the board with regard to the long term implications of each policy.

Based on the case study, answer the following questions.

1. Analyze each of the three dividend policies in light of GAC’s financial position.
2. Which dividend policy would you recommend? Justify your recommendation.
3. Discuss any four key factors to consider when setting the amount of a firm’s initial annual dividend?
4. How should McNeely go about deciding on what initial annual dividend she will recommend to the board?
5. In view of your dividend policy recommendation in part (b), how large an initial dividend would you recommend? Justify your recommendation.

H3 Co. is a farming corporation that grows and sells sugar beets. The company is publicly traded on the stock market: however, management prefers to use variable costing for decision purposes. The company's books are adjusted to arrive at Absorption Income for financial reporting purposes. The company reported the following financial information for the past month:

The company tracks harvested crops that have not yet been shipped out as "in-process.” This inventory of sugar beets increased from the equivalent of 50 full truckloads at the beginning of the month to 70 full truckloads at the end of the month.

What was Absorption Net Income?

Select one:

a. $1,988,000

b. $2,012,000

c. $1,990,000

d. $2,020,000

e. None of the above

Dear Expert

I need your perception and answers how to solve this problem

Pagliaci Pizza is developing a new frozen pizza product, and it asked a random sample of 30 customers to rate the product quality (x variable). The company also observed whether the customer bought the product at the end (y variable)

a. Write the estimated logistic regression equation relating x to y.

b. Based on the equation in part A), estimate the probability that a customer who gives a score of 90 points will buy the product.

c. Based on the equation in part A), a customer will have a 0.80 or higher probability of buying, what is the value of this score?

Question 3

Case 1: Otter Co. is valuing its inventory at year-end. The company has on hand $22,000 in inventory in its warehouse. The company purchased $4,500 of inventory, which was shipped on December 29 with FOB shipping terms. The company didn’t receive the items until after year-end. The company also shipped $6,900 of merchandise inventory to customers on December 27 with FOB shipping terms. The customers all received the items after year-end. What should the company record as inventory at year-end?
Case 2: Otter Co. has $16,700 of merchandise inventory in its warehouse as of the year-end. Included in this amount is $1,400 of cosigned inventory, for which Otter Co. acts as a consignee. Otter Co. did not include $2,400 of inventory that was shipped on December 29 to customers FOB destination. The customers received the items after year-end. What should the company record as inventory on its balance sheet?
Case 3: Otter Co. acts as a consigner for $5,000 of merchandise inventory at retail locations. The company has $8,900 of inventory in its warehouse. The company also has a purchase with shipping terms FOB destination in transit as of year-end that includes $1,500 of merchandise. The company has sales of $1,100 of merchandise in transit at year-end that was shipped FOB destination. What should the company record as inventory on its balance sheet?