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Author Archives: efficientminds
USA TODAY
How Fine Print on Your Bills Helps Big Companies in Taking More of Your Money | PBS NewsHour | Nov. 28, 2012 | PBS
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).
MIRR example
Decision tree example
In HP-Autonomy debacle, many advisers but little good advice
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.