Suggested Questions for Advance Assignment to Students
Essay by shruthire • July 18, 2016 • Case Study • 481 Words (2 Pages) • 984 Views
Suggested Questions for Advance Assignment to Students
- Critically evaluate Mary Shiller’s analysis.
- Critically evaluate each of the six points in Ron Emory’s memo to Mary Shiller:
- Does looking at companies other than P&G make sense? Why?
- Is Mr. Emory’s method for computing yield to maturity correct?
- Are the other cost-of-equity estimation methods as good as the CAPM?
- Should the company computer the cost of retained earnings as part of the cost of capital?
- Is anything lost if Ms. Shiller’s recommendation is written in terms of internal rate of return rather than NPV?
- Since Clorox is more conservatively financed than P&G, do you expect its WACC to be greater or less than P&G’s? Why?
- Based on your assessment of Mr. Emory’s suggestions, what is your estimate of P&G’s cost of capital? Carefully state all assumptions used in your analysis.
- What is Clorox’s cost of capital?
- Critically evaluate Mary Shiller’s analysis.
- Critically evaluate each of the six points in Ron Emory’s memo to Mary Shiller:
- Does looking at companies other than P&G make sense? Why?
- Is Mr. Emory’s method for computing yield to maturity correct?
- Are the other cost-of-equity estimation methods as good as the CAPM?
- Should the company computer the cost of retained earnings as part of the cost of capital?
- Is anything lost if Ms. Shiller’s recommendation is written in terms of internal rate of return rather than NPV?
- Since Clorox is more conservatively financed than P&G, do you expect its WACC to be greater or less than P&G’s? Why?
- Based on your assessment of Mr. Emory’s suggestions, what is your estimate of P&G’s cost of capital? Carefully state all assumptions used in your analysis.
- What is Clorox’s cost of capital?
- Critically evaluate Mary Shiller’s analysis.
- Critically evaluate each of the six points in Ron Emory’s memo to Mary Shiller:
- Does looking at companies other than P&G make sense? Why?
- Is Mr. Emory’s method for computing yield to maturity correct?
- Are the other cost-of-equity estimation methods as good as the CAPM?
- Should the company computer the cost of retained earnings as part of the cost of capital?
- Is anything lost if Ms. Shiller’s recommendation is written in terms of internal rate of return rather than NPV?
- Since Clorox is more conservatively financed than P&G, do you expect its WACC to be greater or less than P&G’s? Why?
- Based on your assessment of Mr. Emory’s suggestions, what is your estimate of P&G’s cost of capital? Carefully state all assumptions used in your analysis.
- What is Clorox’s cost of capital?
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"Suggested Questions for Advance Assignment to Students." Essays24.com. 07, 2016. Accessed 07, 2016. https://www.essays24.com/essay/Suggested-Questions-for-Advance-Assignment-to-Students/69745.html.