1. a. Is the price near its high or low price? What is the total value of IBM stock (market capitalization)?
The price nears the highest it has ever reached, 179.2. This is almost an equivalent figure to what it is today (175.86). Its market capitalization is 168.41 Billion (U.S. Bureau of Labor Statistics, 2017).
b. What is the average daily trading volume (Avg Vol) of IBM stock? Click on “5y” just below the stock price chart to see IBM’s stock price movements over the last five years.
Average daily trading volume is 3.78 Million. Over the past five years, the prices have fluctuated to hit 218 in 2013 but recorded the lowest in 2016, reaching up to 119 (U.S. Bureau of Labor Statistics, 2017).
c. Describe the trend in IBM’s stock price
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Moreover, the shares outstanding for IBM are more than 2.6 Million (U.S. Bureau of Labor Statistics, 2017).
Q3: Ch 2 (10%) Go to https://fred.stlouisfed.org/categories. Under “Money, Banking, & Finance” select “Interest Rates” and then select the “Treasury Bills” then “3-Month Treasury Bill: Secondary Market Rate”. Describe how this rate has changed in recent months. Using the information in this chapter, explain why the interest rate changed as it did.
Over the years, the percentage of bills has been growing steadily to reach 18 % in 1980. Recently, it has been dropping to rates below 1% and steadily progressing along the same. Just like other debt securities, Treasury bill interest fluctuation could be subject to the unsteady rates in other financial borrowings. Most likely, the interests rates by banks have also been decreasing forcing the government to price their bills lower (Becker & Ivashina, 2015).
Q4: Ch 2 (20%) Using the same website, retrieve data at the beginning of the last 20 quarters for interest rates (based on the three-month Treasury bill rate) and the producer price index for all commodities (under "Prices") and place the data in two columns of an Excel. Derive the change in interest rates on a quarterly basis. Then calculate the percentage change in the producer price index on a quarterly basis, which serves as a measure of inflation.
The weekly performance of the stock has a trend of constant growth with a significant growth in price compared to the IBM stock which happened in week four to six (09/30/11-10/06/16). A major factor for the large jump in the stock price is due to the shocking current news of Google acquiring Motorola Mobility for $12.5 billion. Right after the announcement of
If the company did go public, its share price should be $384.37 for per share with the rapid growth scenario.
Net income on the income statement: $2,377,000,000 ($5.37 per share), which is an increase of 15% compared to 2014.
Our ending stock price at the end of year 2023 was $425.58, with the second highest stock price being Baldwin’s $159.81 (Appendix C).
1. Decompose IBM’s ROE (by quarter) and discuss the factors (and trends) that contribute to
4. The case indicates that the company’s “market value” of equity at June 30, 1999 was $460 billion. Compare this to the company’s “book value” of equity. What factors likely explain the difference between these two values?
2. What do you think the current market price is for Rosetta Stone shares? Justify your valuation using both discounted cash flow and comparables (market multiples) analysis.
3. Wasserstein, Perella & Co. established a valuation range of $68-$80 per common share for Interco. Show that this valuation range can follow from the assumptions described in the discounted cash flow analysis section of Exhibit 12. As a member of Interco’s board, which assumptions would you have questioned? Why?
The current enterprise value is $41,335 million and the equity value is $34,455 million. According to yahoo finance, the shares outstanding of our company are 647.31 million, so we can calculate the stock price for next year is $53.23. It will increase in following years.
Stock prices were the highest in Year 15 at $142 per share and ending at $48 a share at the end of Year 18. Stock prices met or exceeded Investor Expectation every year.
b. What is Q’s stock worth per share? How does that value depend on the payout ratio and growth rate after year 4?
IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42%
worth $32,8 billion, which is more than CBS. The market has several segments of the its
Therefore, knowing that on December 9, 1988, the share of the Creative Computers was traded at $22.75 and UBID at $35.6875 and also that Creative Computers had 10.238.703 shares outstanding and UBID 9.146.883, their market capitalization was:
At the time of the acquisition, IBM had 150,000 employees and operations in 160 countries; with 30,000 employees of PWC, the combined entity with 180,000 employees made IBM the largest IT services company. Under the acquisition terms, PwCC became a part of IBM Global Service 's Business Innovation Services unit. IBM is adopting many PwCC practices and philosophies, and naming their executives to key top positions.