All around the world every time somebody hears the word “finance” the first thing that comes to mind is stock, shares, and investment. Therefore, this project was one of the best ways to learn about this class. Close to September 9th Mrs. Snider gives an assignment, find 10 companies and assume that you have $1000 to invest in each one of this, including an IPO that we were asked to look for earlier in the class. Also, we need to calculate how many shares can we purchase according to the closing price of stocks in September 9th. There were not restriction on what kind of companies we could invest in, so I decided to look for companies of different industries and get 2 of each to have an idea how every industry moves too. I looked for companies related to the industry of restaurants, oil, medicine, and others. To be more specific I picked Apple (APPL), Southwest Airlines Co. (LUV), Imperial Oil Ltd (IMO), Total S.A. (TOT), Texas Roadhouse Inc. (TXRH), Cheesecake Factory Inc. (CAKE), Lantronix Inc.(LTRX), Nike Inc.(NKE), Carbo Ceramics Inc. (CRR), Cantel Medical Corp. (CMN), and my IPO that was Westlake Chemical Partners (WLKP). I looked for a wide range of prices with the highest price being $102.08 (Carbo Ceramics Inc.) and the lowest one $1.77 (Lantronix Inc.), this also give me a wide difference in the number of stock that a get in each company having only 9.80 shares in Carbo Ceramics and 564.97 in Lantronix (we will see how this affect to the gain or loss related to the change in the price). Now, lets take a look on the project itself. On the following pages you will find how every company increased or decreased its price and how the movement of the price was related to the Dow Jones Industrial Average. If you need more detailed information you can look at the last pages an see how the price moved every Tuesday and Friday, how much gain or loss this movement created, and the percentage of variation of the DJIA and the gain/loss.
Apple Inc. (AAPL)
Apple Incorporations was one of the companies that produce gain in this investment with a gain of $16,19 per stock, which will bring a total gain of $165,30 (10,21 shares). As you can see in the graphic, this stock moved most of the time with the DJIA.
Dow Jones Comparison
Apple’s Beta is 1.26, which is why the proportion of movement of the stock (blue line) is bigger than the Dow Jones (red line).
IPO: Westlake Chemical Partners (WLKP)
Westlake was a company that made me lose money, I lost $4.25 for each stock, which bring me a total loss of $131.17. The fact that I had a big amount of stocks made me lose a lot of money with a little change on the price. There is not a clear relationship with the Dow Jones.
Dow Jones Comparison
Westlake Chemical Partners is my IPO; therefore it does not have a beta available yet.
Southwest Airlines Co. (LUV)
Southwest Airlines created profit in this investment, if we just look at the graphic we could get confused between saying that it moved with the Dow Jones or that showed no relationship, but taking a look the numbers it is clear that it moved with the Dow Jones. Earning $6.04 per share and a total gain of $183.56.
Dow Jones Comparison
This company´s Beta is 0.59.
Imperial Oil Ltd.
Imperial Oil was one of my losing companies. Moving with the Dow Jones, this company made me lose $2.99 per share resulting in a total loss of $58.63.
Dow Jones Comparison
Imperial Oil has a beta equal to 1.35, this can be reflected in the big decrease that this stock had at the same time the Dow Jones went down, but the stock decreasing in a bigger proportion that the average market.
Total S.A.
Definitely Oil companies were not a good decision, Total S.A. also decreased in price creating a loss per share of $7.98 and a total loss equal to $122.25. This company also moved with the Dow Jones.
Azgard 9 Limited The Origins and Inception Azgard 9 in the ancient legend “Azgard” was one of nine worlds in Norse Mythology; it was protected by “Heimdall” the son of nine different mothers each attributing him with a particular skill and power and thus he would protect Azgard from the powers that be. The significance of nine for our company is not just based on this mythology but also connected with the auspicious nature of this number throughout many different elements in and out of the world…
THE ROLE OF PROJECT FINANCE IN THE PROVISION OF LARGE INFRASTRUCTURE PROJECTS Project finance is the structured financing of a project through a special purpose vehicle created by sponsors for the sake of the project where loan reimbursement is totally dependent on the cash flow of the project itself with no credence attached to the sponsors themselves. Project finance is centered around the SPV “which acts as the nodal agency for bringing together…
As activity on both of the above projects escalate in 2013, there will be significant costs incurred which are directly related to the projects but not directly connected to the day to day activities of the business. Hence we will wish to collect these costs separately so that they do not detract from the normal trading results. Costs incurred will be both of capital and revenue (P&L) expenditure in nature. In due course CPAs will be raised for both projects against which we will record the costs…
Project Management Life Cycle (PMLC) Section 2 Office of the Senior Associate Vice President for Finance Outline Project Management Life Cycle PMLC Review Phases In Depth Monitoring & Controlling Planning Analysis, Design & Development Testing & Readiness Post Go Live Closing Wrap Up Office of the Senior Associate Vice President for Finance Page 2 Process Comparison Project Management Life Cycle Initiating Planning Executing Closing GO LIVE! Idea…
hire is negative and Bruce need to finance by himself of 5 million for the new hire. (c) The new face value of debt that ensures that Bruce pays for the new hire (d) Shareholders will share the risk of being a flop with Bruce, and at the bad time, shareholders will have a negative loss of 5 million. At the good time, shareholders will ask for the fraction of profits that they require at the beginning of the contract. Question 2 (a) Suppose the entrepreneur finances the investment with “outside equity”:…
Project Management Post Project Review BBC — Digital Media Initiative (DMI) Introduction: This post project review will investigate and learn which critical elements led to the failure of the BBC Digital Media Initiative (DMI). The purpose of the DMI project was to increase the production efficiency of BBC staff by establishing state of the art technology, which employees can employ on their desktops. DMI would enable employees to develop, share, and manage video and audio content. The DMI project…
CHAPTER 1- introduction 1.1 The Goal of Finance: Relative Valuation There is one principal theme that carries through all of finance: VALUE The better you can assess value, the smarter your decisions will be The main reason why you need to estimate value is that you will want to buy objects whose values are above their costs and avoid those where it is the reverse The law of one price: It states that two identical items at the same venue should cost the same It is easier to determine whether an…
considering a project in Mexico. They need to analyze the net present value of the project, keeping in mind the exchange rates between Mexican Pesos and Euros in order to maximize their return. They also need to keep in mind the inflation rates over time and the risks involved with this type of investment. Analysis Number 1. Groupe Ariel is recycling old equipment in Mexico. They will need to use pesos to calculate their cash flows to see how this part of their project will impact their finances. They…
“When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal, a project finance framework was employed.” Usually, project finance framework is used when the project has predictable cash flows, which can easily represent operating targets through explicit contract. When cash flows are certainty, the company can have higher level of leverage and it is easier to separate project assets from the parent company. Advantages and Disadvantages:…
2.5.5 Finance One of the existing string of all profitable action is Finance. The provision of start-up resource and money to fit functional expenses will be provided by access to finance. Employers who may be facing lack of a start-up finance as a challenge in estimating start-up finance must not be abondoned. Lack of savings and ignorance of the origins of finance are some of the other factors that casues employers to face challenges in finance. It is rather unhappy that the problem with access…
