Sample MBA220 Case #2

In looking over the reports of last semester I found none were perfect.  All could have been improved greatly.  Given that, here are some disclaimers before I attach a sample…

Disclaimers:

  • I can not tell you what grade this report received nor can I tell you my opinion of the report.
  • The comments or lack thereof are no indication of the level of scrutiny to be applied to this semester’s submissions.
  • This report is a sample and is in no way representative of a suggested, desired, excellent, or perfect submission.
  • This report is provided for informative purposes only.
  • This report is not a target you should shoot for.
  • You should strive to make your report much better than the sample provided here to achieve a reasonable grade.

Now, here is the report: Sample_case_2.

Bear in mind the law of unintended consequences: You asked for a sample.  Now I expect your submissions to be significantly better than the sample.

Cost of equity (Rs) over the last 19 years by sector

Notes:

  • Data are obtained from CompuStat Research insight
  • Returns include dividend reinvestment
  • Each year a market-value weighted return by sector is computed then the arithmetic mean over the entire sample is computed.
  • Something looks fishy with Energy and InfoTech.  I need to investigate the presence of any outliers.
    • Update: regarding InfoTech, the dot-com run up prior to 2000 appears to be the reason for the high cross-sectional average Rs of 16.27%.
  • Stay tuned for similar graphs using median instead of weighted mean calculations.
  • The median P/E firm in each sector can be more representative of the “typical” firm than a value-weighted average (Goedhart, et al. 2002).

With Autonomy, H-P Bought An Old-Fashioned Accounting Scandal. Here’s How It Worked. – Forbes

How can such a large reputable company like HP, with all of their intelligent employees, and “top talent” management make such a huge ($8.8 billion) mistake?

This is more evidence of the Ponzi scheme and casino like aspects of the stock market.

http://www.forbes.com/sites/danielfisher/2012/11/20/with-autonomy-h-p-bought-an-old-fashioned-accounting-scandal/