Different questions that should be answered separately

1) Auditors and regulators are reminding firms to look closely at their accounts payable to be sure they haven’t inadvertently created debt that might alter leverage ratios and violate other loan covenants. What’s the deal?

2) Major disruptions in global politics and economics will disrupt financial markets. 9/11, the Greek Crisis, and the recent Brexit all being good cases. How do these events impact interest rate expectations and therefore IRP between major currencies?

3) Why would the impact of shares repurchases be different across different time horizons? Do you think share repurchases are more valuable to the firm’s longer term objectives during the times of systemic crises (e.g. COVID19)? 

4) https://markets.businessinsider.com/news/stocks/insiders-cash-out-via-ipos-investor-optimism-becomes-excessive-2020-12-1029919751 (Links to an external site.) (also attached below). In your opinion, do insiders’ sales of shares act as a signal that the stock is currently over-valued?  Why? Why not?

5) Consider Apple stock. Apple’s valuations are heavily dependent on intangible assets valuations, as the company is a heavy user of intangible capital in its revenue generation model (think Apps platform). At the same time, Apple is one of the five largest companies in the world. This means that Apple’s stock price changes are systematic to the entire market: when Apple stock rises or falls, markets tend to rise or fall too.

Looking back at the assumption and definition of the APT, in your opinion, does APT apply in the case of the market that is so heavily dominated by Apple? Explain your thinking.

6) In our required readings we covered two papers, both highly critical of the CAPM. The two papers are:

Despite this criticism, CAPM is still being widely used in corporate finance and in some investment management applications around the world.

Q: Can you think of any valid reasons why CAPM is still being used in practical or applied finance?

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency