...Beta Blockers After Myocardial Infarction Clinical Scenario The acute care nurse practitioner on the cardiology service treats a 67 year-old-male admitted after recovering from an acute ST-Elevation Myocardial Infarction (STEMI). His risk factors include obesity, Type II diabetes mellitus, and family history. Upon exam the patient asks why he has not been started on a beta blocker yet. He explains further that when his brother had a “heart attack” in 2005, he was immediately placed on a beta blocker because the cardiologist reported how beta blockers reduce mortality after myocardial infarction (MI). The patient wants to know if a beta blocker would reduce his chance of mortality? Using the Patient-Intervention-Comparator-Outcome (PICO) format we formulated the following question. In a 67-year-old male with multiple co-morbidities with MI (P), does treatment with a beta blocker (I), compared with no beta blocker or placebo (O), reduce mortality rate (O)? Risk Factors, Incidence and Prevalence of Disease * US incidence rates of cardiovascular disease, including MI, are seen in men more than women (Alexander et al., 2007). This trend is also true in Utah ("Impact of heart," 2007). * The incidence rates of cardiovascular disease increase with age (Alexander et al., 2007). * Risk factors for cardiovascular disease include not eating enough fruits and vegetables, lack of physical exercise, smoking cigarettes and the co-morbidities of diabetes, hypertension, hyperlipidemia...
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...CAPM in Public Utility Rate Cases: Comment Author(s): Dennis E. Peseau and Thomas M. Zepp Reviewed work(s): Source: Financial Management, Vol. 7, No. 3 (Autumn, 1978), pp. 52-56 Published by: Wiley on behalf of the Financial Management Association International Stable URL: http://www.jstor.org/stable/3665011 . Accessed: 08/02/2013 07:25 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . Wiley and Financial Management Association International are collaborating with JSTOR to digitize, preserve and extend access to Financial Management. http://www.jstor.org This content downloaded on Fri, 8 Feb 2013 07:25:31 AM All use subject to JSTOR Terms and Conditions Utility Regulation and the CAPM: A Discussion On the Use of the CAPM Cases: in Comment Public Utility Rate Dennis E. Peseau and Thomas M. Zepp The authors are Senior Economists on the staff of the Oregon Public Utility Commissioner. * In a recent issue of Financial Management, Professors Eugene Brigham and...
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... Ground Floor, Building No. 1041-C-1, Devi Bhawan Bazar, JAGADHRI – 135 003, Yamunanagar, Haryana, INDIA http://ijrcm.org.in/ VOLUME NO. 4 (2014), ISSUE N O. 10 (OCTOBER) ISSN 2231-5756 CONTENTS Sr. TITLE & NAME OF THE AUTHOR (S) No. 1. BRAND PRIDE AS A CONSTRUCT CONTRIBUTING TO RETAINING MISSION CRITICAL TALENT OF THE 2. 3. 4. ORGANIZATION: A COMPARATIVE STUDY OF SELECTED ORGANIZATIONS DR. GEETA BANSAL & DR. PARUL PANDEY CONSUMER ATTITUDE AND PERCEPTION TOWARD BRANDS OF EDIBLE OIL: AN EMPIRICAL STUDY AMITA SHARMA & DR. D. S. CHAUBEY CAPITAL STRUCTURE AND ITS IMPACT ON PROFITABILITY OF AUTOMOTIVE INDUSTRY: THE INDIAN CASE SANJAY HIRAN & DR. MAHENDRA SOJATIA MERGERS AND ACQUISITIONS IN INDIAN BANKING SECTOR: AN IMPACT ANALYSIS WITH SPECIAL REFERENCE TO SELECT SURVIVING COMMERCIAL BANKS (INDIAN OVERSEAS BANK AND FEDERAL BANK LIMITED) DR. WAGHAMARE.SHIVAJI & VEERESHA EXAMINING WEAK FORM EFFICIENCIES IN STOCK MARKETS OF INDIA AND CHINA PRASHANT JOSHI THE MARKET FOR GREEN BUILDINGS IN EMERGING INDIA: A LITERATURE REVIEW AND RESEARCH AGENDA SUNITHA LIZZIE PEREIRA & MUSTIARY BEGUM COMPARATIVE STUDY ON AMWAY & AVON ON THE...
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...ft Beta Estimation Practice And Its Reliability Biasness Towards Aggressive Stocks: An Empirical Evidence From NSE * Dr. Neeraj Sanghi ** Dr. Gaurav Bansal INTRODUCTION While investing in a capital market, investors always have concern about the market movements or changes in the value of capital market index. This tendency of investors' behavior is related to a psychological factor that reveals that market movements and prices of stocks are closely related to each other. Upward / downward movement in market index gives trigger to the expectation of investors that the value of their holding would move accordingly. This is, more formally, known as systematic risk arising on account of economic wide uncertainties and explains the tendency of stock's price movement together with changes in market index. Systematic risk, also known as market risk, cannot be reduced through diversification of stocks' portfolio. Investors arc exposed to market risk even when they hold well diversified portfolio of securities. In finance literature, beta coefficient is a measurement statistic of systematic risk; it refers to the slope in a linear relationship fitted to data on the rate of return on a stoek and Ihc rate of return of the market (or market index). This usage stems from Sharpe's 1963 paper in Management Science. Beta is the stock's sensitivity to the market index: it is the degree (in percentage) by which the stock's relum lends to increase or decrease for every 1% increase or decrease...
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...Financial Accounting Theory Test 1: 1) Please briefly describe the essences of the following cases of accounting scandal or earnings management. (20 points) A) ENRON (8 points) * Enron created many special purpose entities (SPEs) controlled by senior Enron officers that they used in conducting off balance sheet financing * SPE’s borrowed money from banks using Enron’s stock as collateral However all of the liability was reported on the SPE’s books, not on Enron’s, even though the borrowed cash went to Enron * Thus investors had no idea of Enron’s debt because they did not consolidate the SPE’s like they were suppose to under GAAP * Enron also charged fees for management and other services supplied to their SPE’s and included appreciation of its own stock which exaggerated net income * They had to consolidate their financials resulting in a reduction of shareholder’s equity, restatement of previous 4 years earnings, loss of investor confidence, share price fell from $90 to 66 cents then 1 cent * The SEC revoked the auditing license of accounting firm they used, Arthur Anderson B) MCI WORLDCOM (8 points) * From 1999-2002 they overstated their earnings by $11 billion * $4 billion of this amount was from capitalization of network maintenance and other costs that should have been expensed * and $3.3 billion came from reductions in the allowance for doubtful accounts * WorldCom’s merger with MCI was a disaster and went bankrupt...
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...CALIFORNIA PIZZA KITCHEN Teaching Note Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides an engaging context to discuss the “pizza graphs” that are commonly used in corporate finance curriculum to illustrate the wealth effects of capital structure decisions. The case serves to motivate the following teaching objectives: • Introduce the Modigliani-Miller intuition of capital structure irrelevance; • Establish how the cost of equity is affected by capital structure decisions by defining financial risk and introducing the levered-beta capital asset pricing model (CAPM) equation; • Discuss interest tax deductibility and the valuation tax shields; • Explore the importance of debt capacity in a growing business. Suggestion for Advance Assignment to Students Students may consider the following study questions: 1. In what ways can Susan Collyns facilitate the success of CPK? 2. Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of...
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...Capital Asset Pricing Model: The Indian Context R Vaidyanathan T he Capital Asset Pricing model is based on two parameter portfolio analysis model developed by Markowitz (1952). This model was simultaneously and independently developed by John Lintner (1965), Jan Mossin (1966) and William Sharpe (1964). In equation form the model can be expressed as follows: E (Ri) = Rf + (i [E(rm) – Rf] = Rf +(im / (m (E(Rm) – Rf / (m) Where E(Ri) is expected return on asset i, Rf is the risk-free rate of return, E(Rm) is expected return on market proxy and (i; is a measure of risk specific to asset i. This relationship between expected return on asset i and expected return on market portfolio is also called the security market line. If CAPM is valid, all securities will lie in a straight line called the security market line in the E(R), (i frontier. The security market line implies that return is a linearly increasing function of risk. Moreover, only the market risk affects the return and the investor receive no extra return for bearing diversifiable (residual) risk. The set of assumptions employed in the development of the CAPM can be summarized as follows [Sears and Trennepohl (1993)]: 1. Investors are risk-averse and they have a preference for expected return and a dislike for risk. 2. Investors make investment decisions based on expected return and the variances of security returns, i.e. two-parameter utility function...
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...Type 2 diabetes accounts for 90% of all diabetic cases. People with diabetes have a 25-75% high risk of death associated with cancer, infection, liver disease, lung disease, and falls (Murea, Ma, & Freedman, 2012). Type 2 diabetes is characterized by high blood sugar, impairment in insulin secretion, and insulin resistance (McCulloch & Roberston, 2017). According to McCulloch and Robertson (2017), our ability to prevent this type of diabetes in the...
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...How a company is finance its growing business, operations by using multi types of funds is called capital structure, both short & long term loan need to be counted when explaining a company capital structure. Company can chose whatever percentage of debt and equity they like to have is their business. Four primary factors influence capital structure decisions- 1. Business risk- the higher the company business risk, the lower the proportion of debt is good 2. Tax proposition- a significant reason for using debt is the interest on debt is tax deductible which effect lower cost of debt 3. Financial flexibility- the capability to increase fund under crucial condition on reasonable terms 4. Manager attitude- how much to loan depends on manager’s attitude regarding financial risk. These four factors largely determine the target of capital structure. After analyzing those factors a firm set up a capital structure which is optimal structure and indicate company increasing fund in future but it could be change over time due to certain circumstances. The optimal capital structure is the one that balance between risk & return to acquire the company objective. (http://ezinearticles.com/?The-Target-Capital-Structure&id=53666) Effect of borrowing on WACC (traditional view)- traditional view of capital structure imply that the benefit of borrowing outweigh not borrowing, low cost of debt with its tax deductible advantage will effect the WACC to fall as borrowing...
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...L THEORY & PRACTICE FOR FUND MANAGERS O F FALL 2013 Volume 22 Number 3 RISKBASED PORTFOLIOS special section The Voices of Influence | iijournals.com Pursuing the Low Volatility Equity Anomaly: Strategic Allocation or Active Decision? ERIK KNUTZEN ERIK K NUTZEN is the chief investment officer at NEPC LLC in Cambridge, MA. eknutzen@nepc.com FALL 2013 JOI-KNUTZEN.indd 75 I n the past several years, asset managers have built investment strategies based on historical evidence that lower volatility stocks earn superior risk-adjusted returns. These approaches are being called low volatility, managed volatility, minimum variance, or similar names. They seek to exploit what has been identified in studies by academics and practitioners alike as an equity pricing anomaly. This anomaly joins previously identified persistent stock market inefficiencies associated with low price-tobook and smaller company shares. This article evaluates the low volatility anomaly, its potential causes, whether it is likely to persist, and the role, if any, of low volatility equity investing in long-term investment programs. Based on historical information, we conclude that the low volatility equity anomaly appears to exist and can be explained by certain behavioral and structural biases of investors. But its continued existence into the future is less certain. We also observe that even well-documented anomalies experience multi-year periods of ...
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............................................................................ 1! 2! INTRODUCTION ..................................................................................... 2! 2.1.! Purpose ................................................................................................................. 2! 3! THE FINNISH FUND MARKET .............................................................. 3! 4! PREVIOUS RESEARCH ........................................................................... 5! 5! METHODOLOGY ..................................................................................... 8! 5.1.! Standard Deviation .............................................................................................. 8! 5.2.! Beta ....................................................................................................................... 8! 5.3.! Jensen Alpha ........................................................................................................ 9! 5.4.! Sharpe Ratio ....................................................................................................... 10! 5.5.! Treynor Ratio ..................................................................................................... 10! 5.6.! Hypothesis ........................................................................................................... 11! 5.7.! Autokorrelation ...........................................................................................
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...ZBT Presents Dover Days 2014 Dover Days are made possible by a generous grant from the Zeta Beta Tau Foundation. Zeta Beta Tau Mission The mission of Zeta Beta Tau (ZBT) is to foster and develop in its membership the tenets of its credo: Intellectual Awareness, Social Responsibility, Integrity and Brotherly Love, in order to prepare its members for positions of leadership and service within their communities. Mindful of its founding in 1898 as the Nation’s first Jewish fraternity, ZBT will preserve and cultivate its relationships within the Jewish community. Since 1954, ZBT has been committed to its policy of non-sectarian Brotherhood, and values the diversity of its membership. ZBT will recruit and initiate men of good character, regardless of religion, race or creed who are accepting of these principles. The Credo of Zeta Beta Tau We, the members of Zeta Beta Tau Fraternity, believe that the development of the individual as a responsible, mature member of society is the primary goal of the university today. We believe that the fraternity offers to the university community a unique, desirable and successful means of achieving this goal. In fulfilling the purposes of fraternity, we dedicate ourselves to the principles of: INTELLECTUAL AWARENESS. Fraternity creates an atmosphere conducive to the expansion of the individual’s intellectual horizons, the interchange of ideas within the academic community and the pursuit of scholastic excellence. ...
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...=>? McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring...
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...Financing the Mozal Project Li Hongru, Ji Bian & Frantz Moudoute Analysis of an Project Finance case in Mozambique The University of Hong Kong, MBA Class of 2016 Summary Summary ........................................................................................................................................ 2 The Mozal project – Presentation ........................................................................................... 3 Project Financing – Definition ................................................................................................. 3 Project finance -‐ Advantages and disadvantages ............................................................. 4 Advantages ................................................................................................................................ 4 Disadvantages .......................................................................................................................... 4 Project Financing -‐ A solution for Mozal ............................................................................. 5 “Hujambo Mozambique!” .......................................................................................................... 5 Risk assessment ........................................................................................................................... 6 Sovereign risk..............................................................................
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...California Pizza Kitchen November 16, 2013 ABSTRACT The purposes of this case study are to discuss the main issues of CPK (California Pizza Kitchen) and think critically to find solutions to the current situation. In order to achieve these purposes, we first analyze time frame of the CPK’s establishment and recent development to find the absolute advantages and disadvantages of CPK compared with its competitors. According to our calculation, we will discuss whether to use moderately levering up CPK’s equity. Finally, a more suitable and profitable model will be established to improve the competitiveness and market share percentage of CPK. Key words: time frame, stay power, levering up, and debt INTRODUCTION California Pizza Kitchen (CPK) was a casual dining restaurant that co-founded by Larry Flax and Rick Rosenfeld in 1985 in Beverly Hills. California. Larry Flax and Rick Rosenfeld both hold the title of co-present, co-CEO, and co-chairman of the Board of Directors for CPK. It is known for its health-baked barbeque-chicken pizza, the “designer pizza at off-at-the-rack prices” concept flourished. By 2007, the company expanded its chain to 213 locations in 28 states (about 41% in California) and 6 foreign countries. The casual dining model had won much brand awareness and brand loyalty with its family-friendly surrounding, excellent ingredients, and inventive offering. The current core customers of CPK had an average household income of $75,000 (results...
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