This website uses cookies to ensure you have the best experience.

# Finance Mba Essay

1478 words - 6 pages

1. Calculating Returns
Suppose a stock had an initial price of \$84 per share, paid a dividend of \$1.40 per share during the year, and had an ending share price of \$96. Compute the percentage total return.

The percentage total return is (96-84+1,40)/84=0,1595=15,95%

2. Calculating Yields
In Problem 1, what was the dividend yield? The capital gains yield?

Capital gain yield: (96-84)/84=0,1429=14,29%
Dividend yield: 1,40/84=0,167=1,67%

3. Calculating Returns and Variability
You’ve observed the following returns on Yasmin Corporation’s stock over the past ﬁve years: 19 percent, -13 percent, 24 percent, 31 percent, and 8 percent.
a. What was the arithmetic average return on ...view middle of the document...

Large company stocks :(-14.69-26.47-37.23+23.93-7.16+6.57)/6 = 3.24%

T-Bills: (7.29+7.99+5.87+5.07+4.54+7.64) /6= 6.55%

b.
large company standard deviation: 24,11

t bills standard deviation: 1,23

c.
-14.69-7.29) + (-26.47-7.99) + (37.23 – 5.87) + (23.93 – 5.07) + (-7.16 – 5.45) + (6.57- 7.64) = -19.9%

Arithmetic average risk premium: -19.90/6= -3.32%

Standard deviation of the risk premium: 24.91

6. Systematic versus Unsystematic Risk
Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Corp.’s stock to change price. Provide a rationale for each response.
a. The government announces that inﬂation unexpectedly jumped by 2 percent last month.
Since it is an unexpected systematic event, prices will be most likely to drop.
b. Big Widget’s quarterly earnings report, just issued, generally fell in line with analysts’ expectations.
Since this is an expected event, the price will remain constant.
c. The government reports that economic growth last year was at 3 percent, which generally agreed with most economists’ forecasts.
Since new intel are in line with the previous forecasts, price will remain constant.
d. The directors of Big Widget die in a plane crash.
Since the event couldn’t be expected and would change the general direction of the company, the price will be likely to drop.
e. Congress approves changes to the tax code that will increase the top marginal corporate tax rate. The legislation had been debated for the previous six months.
In this case, the market is aware of the arriving tax change, so the price should already be adjusted before the law pass.

7. Calculating Returns and Standard Deviations
Based on the following information, calculate the expected return and standard deviation for the two stocks.

State of Economy
Probability of state of economy
Rate of Return if State Occurs
Stock A
Stock B
Recession
.15
.03
-.20
Normal
.50
.07
.13
Boom
.35
.11
.33

Expected return of Stock A
(0.15 x 0.03) + (0.50 x 0.07) + (0.35 x 0.11) = 0.0045 + 0.035 + 0.0385= 0.078 which is 7.8%

Expected return of Stock B
(0.15 x -0.20) + (0.50 x 0.13) + (0.35 x 0.33) = -0.03 + 0.065 + 0.1155= 0.1505 which is 15.05%

8. Systematic versus Unsystematic Risk
Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear in every case? Provide a rationale for each response.

a. Short-term interest rates increase unexpectedly. This is a systematic risk since all rates will increase and will affect every companies.
b. The interest rate a company pays on its short-term debt borrowing is increased by its bank. This is an unsystematic risk since only the company is affected.
c. Oil prices unexpectedly decline. In this case, the classification can be seen as ambiguous since the oil...

## Other Papers Like Finance Mba

### Why Do I Study Managerial Finance?

274 words - 2 pages Name: Hany Samuel William Why do I study Managerial Finance? MBA in Finance Telecom Egypt Company It gives me much pleasure to give a snapshot on the benefit of studying this course, Managerial finance. I can get the best use of this course not only on my career path but also on my personal life. First, regarding my career path, I am working in the payroll department

### My Decision to Pursue Mba Essay

1279 words - 6 pages , it can assist me in becoming a more successful leader; sharpen the managerial skills and tools such as communication and motivating people. MBA program will expose us to a wide range of subjects like economics, accounting, finance, marketing, operations management, supply chain management, organizational behavior and project management. After covering a breadth of subjects in two years, I will have the opportunity to specialize in the subject of

### Why I Decided to Pursue Mba

564 words - 3 pages . Just Better work knowledge is not sufficient get to better hold in work ,but other business skills ,like good knowledge of human capital development ,corporate finance are helpful tools to play an active role in applied business research , strategic planning and implementation in any organization. .. According to published article by Patrick Erwin, career builder.com writer TO MBA, or NOT TO MBA? A master’s degree in business administration is

### Why an Mba

1705 words - 7 pages enrollment counselor, which in turn sent me information about their MBA program. The program consisted of classes such as management, human resources, business law, accounting and finance, and many more depending on the emphasis that I decide to go after; this grabbed my eye as something that could be very interesting, and challenging. In the information that they had sent me it stated that an MBA degree can provide me with the advancement in my

### Construct and Support an Argument

1057 words - 5 pages TITLE Construct and Support an Argument The decision to pursue and earn a Master of Business Administration (MBA) graduate degree is an important decision that will have far reaching positive influences in life and will assist in finding a new rewarding career. An MBA is one of the most important tools in the toolbox for a business, personnel, management, finance, human resource, and entrepreneurial careers. The critical success in the

### The Mba Decision

2109 words - 9 pages The MBA Decision | Case 1 | FIN640 Corporate FinanceMisty SkinnerBrookline College | Misty Skinner | | | 1. How does Ben’s age affect his decision to get an MBA? We assume that both MBA program start at the beginning of the year, now is the beginning of the year at his age of 28 and he can enroll both program now. The following summary table shows the information he can use to make the decision. Option | Dewey and

### Cadbury Swot Analysis

908 words - 4 pages bur7/21/13 Cadbury | SWOT Analysis | BrandGuide | MBA Skool-Study.Learn.Share. Create Account | Login O r C onne ct with Home Articles Docs Concepts BrandGuide Colleges Forum Careers FunCorner Quizzes Search MBASkool.. Go Latest Events & Contests: You are here: Home INVITING ARTICLE FOR HR MESH AUGUST '13 EDITION-Symbiosis Centre For Management BrandGuide Food & Beverages Cadbury

### Branding Of College

1639 words - 7 pages current market scenario an MBA program would provide in-depth knowledge that covers variety of business areas and nurture a person to be a business ready. 5. Career Shift After spending 5 years in an IT industry a person realises that it is not his forte. He thinks he can do well in Marketing or Finance sector. So it is this MBA program which most of professionals select in order to change career track smoothly. In fact it is one of the

### Jjjjjjkvb

2268 words - 10 pages (%) Year of passing 2nd year MBA, finance K.S. SCHOOL OF BUSINESS MANAGAMENT Pursuing 2012 1st year MBA, finance K.S. SCHOOL OF BUSINESS MANAGAMENT 4.10 GPA out of 5 2011 B.B.A. - final year Gujarat university 73 2010 HSC {commerce} Rajasthan board , Ajmer 81.08 2007 SSC Rajasthan board , Ajmer 69 2005 Computer Skills Microsoft Office

### Reason for Mba

2124 words - 9 pages Skill (that you want to use down the road) An MBA can in face teach new skills, whether they are corporate finance, business organization, micro and macro economics, accounting, etc.  For people that have studied or have been working in fields that are not very business related (e.g. teaching, research, arts), then these skills are very new, and often challenging.  But it's important that there is at least an initial plan to use these skills in a

### India Bulls,

1076 words - 5 pages Bharati Vidyapeeth Deemed University “FINANCIAL ANALYSIS: A COMPARATIVE STUDY OF INDIABULLS HOUSING FINANCE LTD.” A SUMMER TRAINING PROJECT REPORT SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MBA 2O11-13 SUBMITTED BY GUIDED BY CHETAN SAPRA MS. SONALI MBA (FINANCE & MARKETING) DHARAMADHIKARI ROLL NO. 30 CERTIFICATE OF ORIGINALITY This is to certify that the project report

## Related Essays

### Mba Finance Essay

2325 words - 10 pages Organizational Change。the adoption of a new idea or behavior by an organization.Disruptive Innovation。Innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers. (296) Ambidextrous approach。Incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations. (297Product change。Change in the

### Finance Mba 645 Essay

540 words - 3 pages , Randolph Westerfield, Bradford Jordan. Fundamentals of Corporate Finance Standard Edition, 10th Edition. McGraw-Hill Learning Solutions, 01/2012. . 6.2 Suppose your boss comes to you and asks you to re-evaluate a capital budgeting project. The first evaluation was in error, he explains, because it ignored flotation costs. To correct for this, he asks you to evaluate the project using a higher cost of capital which incorporates these costs. Is

### Training And Development Essay

675 words - 3 pages IN GOOGLE ------------------------------------------------- Top of Form Bottom of Form FOLLOW PROJECTS4MBA ON GOOGLE+ FACEBOOK CATEGORIES * Banking * Best Sample Resume * Distance Education In India * Employee Motivation * Employee Relationship Management * Employee Retention * Employee Welfare * Finance * Free MBA Project Report Offers * Grievance Handling * Health Care * HRM * Insurance

### Ppr On Mba Studies Essay

619 words - 3 pages that specialised master's programmes in management, finance, and accounting continue to show robust growth. 744 programmes, including 527 MBA programmes, 24 business doctoral programmes (PhD/ DBA) and 193 specialised master's programmes, from 359 B-schools in 46 countries participated in the survey this year.