Tuesday, March 12, 2019
Pakistan Banks Ratios
What factors should Amerada management consider when evaluating the reposed st rankgy? . Calculate Marinades debt-to-value ratio victimization both the book value and market value of the firms truth. How does Marinades debt-to-value ratio oppose to that of other discount brokerage and investment service companies in establish 4? In general terms, how does leverage affect the rockiness of a firms equity? 3. Amerada has a short history of trading, so its beta cannot be computed simply using its own historical data.Exhibit 4 houses some choices for comparable firms. Which of these firms do you think are appropriate to use as comparable to set apart the beta of Marinades planned advertising and technology investments? Why? 4. Using the linage price and return data in Exhibits 5 and 6, estimate the bivouacking beta and Fame-French factor sensitivities for the stocks of comparable firms. 5. Estimate the weighted-average cost of capital for Marinades proposed expansion. What risked rate do you use?Are the cost-of-capital estimates similar using the CAMP and Fame-French three-factor models? Guidelines You whitethorn work on the case in groups of 3 or 4 students. Please hand-in one write-up per group. All members of the group should be prepared to question the case in class. State clearly any assumptions you make and provide enough information so that a reader can look out your analysis. I would expect the case write-up to be two to three pages addition supporting tables.
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