The Stock Market is a very dangerous thing. On one hand, it makes a majority of the money for the World, but on the other side, it can lead to a crash that can destroy the World’s economy. So when I choose Best buy and Micron Technologies, I choose them to follow the former and not the latter. I chose Best Buy and Micron technologies because there was little cause for concern in their history, They Are doing well at the present, And have positive outlook for the future. The past of Best Buy has had it’s ups and downs. Minnesota-based Best Buy Co., Inc. is the leading consumer electronics retailer in the United States. In early 2004, the company's flagship Best Buy chain included more than 600 stores in 48 states as well as 19 more in Canada. In addition to personal computers, computer peripheral equipment, and consumer video and audio products, Best Buy outlets, offer large and small appliances, ranging from refrigerators to coffeemakers, and entertainment software, including compact discs, video games, DVD and VHS movies, and computer software. In the early 2000s, Best Buy acquired two other chains: Seattle-based Magnolia Audio Video and Burnaby, British Columbia-based Future Shop. By early 2004, Magnolia Audio Video operated 19 stores in Washington, Oregon, and California offering high-end consumer electronics and providing expert design and installation services. Future Shop, operating more than 100 stores throughout Canada, is that nation's largest electronics retailer, offering a wide selection of digital products, televisions, computers, music, and appliances. The average Future Shop outlet occupies approximately 21,000 square feet of retail space. Each of the company's business units also runs an electronic shopping web site on the Internet. Overall, Best Buy's revenue mix has consumer electronics generating 37 percent of the total revenues; home office products, 35 percent; entertainment software, 22 percent; and appliances, 6 percent. Over the years, it has risen and fell like most companies. In the last year, it was starting to fall steadily, and most people thought it was gonna be snuffed out like circuit city. But in the last 3 month, its stocks have rose over 70 percent. That is amazing. As for Micron Technologies, it has been pretty steady. Micron is a holding company for subsidiaries engaged in the design…
The beginning of common stock starts with an initial price offering (IPO) by a privately held company. There are many steps involved with becoming a publicly traded company. As with any decisions that a firm makes, there are both advantages and disadvantages of going public vs. remaining private. Some of the advantages including a much greater access to capital, attracting top talent by being able to offer stock options, and enlisting in the stock market acts as a huge…
The objective in this paper was to investigate the motives for and consequences of earnings manipulation in a sample of firms targeted by the SEC for allegedly overstating earnings. The paper examined the need for external financing which had received a small amount of attention in previous earning management literatures. This paper also discussed management incentive to manipulate which should be checked on by an internal governance structure. This paper also examined the stock price reaction and changes…
DATE: January 19, 2015
SUBJECT: How Do Earnings Numbers Relate to Stock Returns?
As for the motivation, in the past literature, it developed a relation between accounting earnings and stock returns. This article follows the steps of former articles and provides deeper insights for understanding this relation. It developed a large body of theory about the association between accounting income numbers and changes in share prices. But there are still some questions that haven’t been solved. In…
Part A. Case Study.
1. Paper use:
There are 25 staff in the APCSUPERSTORE office, each use 150 pages of copy paper per week.
25 X 150 = 3 750, this is the consummation per week for all the office.
3 750 X 4 =15 000, so the office needs 15 000 page of copy paper per month.
For the month of April 2010, AOCSUPERSTORE ordered 4 boxes of paper; each box contains 5000 pages of paper.
4 X 5000 = 20 000, this the number of paper odered for the month of April 2010.
use discount cash flow model and other analytical tools to study the effect of investor sentiment in the run-up in Tesla’s stock price between March 22, 2013 and February 26, 2014. Although the authors do not include the premium for a synergy from a merger or acquisition and the premium for a real option to enter a new market in the valuation of the stock, they find that the stock is overvalued by nearly 150% during the run-up period. They also conclude that the increase in market price is attributed…
Debt versus Equity Finance Paper
The following paper will contrast lease versus purchase options defining debt and equity financing options. Additionally the paper will provide examples of these options and the advantages as to why companies decide to choose one option over the other, or decide to use a mix of both in their capital structure.
Companies incur in debt financing when they need to raise capital by borrowing money from a lending institution such…
rapid growth in the recent past, it is likely that the expectation that the growth will continue may already be incorporated into the price of the stock. For example, if the market expects Company X to grow much faster than Company Z, the stock of Company A may trade at a much greater price/earnings ratios than stock of Company Z does. Whether or not stock of Company X turns out to be a good investment really depends on whether the future growth will be faster or slower than what the market already…
Sarbanes-Oxley Act Paper
August 18, 2014
Sarbanes-Oxley Act Paper
The Sarbanes-Oxley (SOX) Act was enacted by legislation in 2002 to regulate the financial practice of businesses within the United States. During the time that it was passed, many large corporations were being scrutinized for their business practices and accounting scandals. Most notably, these corporations include Enron, Tyco International, and WorldCom among others. The scandals cost investors…
what ways are the events described at Intel and eBay similar and in what ways are they different (4 marks)?
Question # 1
Brandt Cornell’s paper “Is the response of analyst to information consistent with fundamental valuation?” reveals that analyst recommendations are pro cyclical. As bad news arrives and the underlying price of the firm’s stock goes down , analyst downgrade company , the opposite effect arises when good news arrives. As Cornell says , this leads to a positive feedback…
Investment in Sherman
Gain on acquisition
Calculation of gain on acquisition:
Fair value of Sherman = $2,500 + $100 + $100 + $250 + $30 = $2,980
$2,980 – $2,750 = $230 gain
b. Consolidation working paper elimination entries:
Investment in Sherman
Other plant assets, net
Investment in Sherman
Note: Acquisition costs are expensed separately…