Stock Essays

Spartan, who was a leading designer and manufacturer of specialized industrial heat transfer equipment earns sales revenues of $25M. The company has prided themselves on creating a Make-to-Order system that allows customers the option of customizing their orders to their needs. Customization is what gives Spartan the competitive edge over …

1. Does the global economic crisis signal that the American model of free market capitalism is fundamentally flawed? No, the global economic crisis does not signal that the American model of free market capitalism is fundamentally flawed because America government should definitely provide a support role for the corrective measures …

Joanna began her calculation of Nike’s WACC by finding the necessary weights of debt and equity to be used. To begin, Joanna found Nike’s debt by combining the book values of current long-term debt, notes payable, and long-term debt, which were all found on Nike’s balance sheet. The values were …

No Cash Dividends, No Stock Dividends or Split. In the case of Georgia Atlantic, this strategy is not recommendable because of several factors. First of all, the most recent Market-toBook value is well below 1, meaning that the company has not invested in any profitable projects anymore. The retained earnings …

1.Why does CSX want to buy Conrail? How much should CSX be willing to pay for it? 1, If the CSX buys Conrail, this combination would create the second largest rail system in the United States and the largest rail system east of the Mississippi River. The new company would …

A director plays a vital role in a corporate organization. They manage the business, design business policies and select the officers. Liability of the directors is a crucial aspect where a director is expected to be honest, vigilant and protect the shareholders trust in him. Shareholders own the corporation and …

Unusual stock market return activities has been a major topic of empirical finance research for a few decades now. Seeing the objectives of an investor are to always make profitable investments, they will jump for opportunities where abnormal profits can be made due to market inefficiency. Over the past 40 …

The repurchase of outstanding shares by a company in order to reduce the number of shares in the market is termed as buy-back of shares. Companies will buy-back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be …

1. The following are examples of disguised options for firms: I) acquiring growth opportunities II) ability of the firm to terminate a project when it is no longer profitable III) options that are associated with corporate securities that provide flexibility to change the terms of the issues A. I only …

There are various types of irrational behaviors of investors, among which we are highly interested in why people tend to follow what others do rather than believe in his or her own judgment. The phenomenon is called herd behavior. Some investors claim, “We know there is herd mentality, so we …