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BAFI1045 Finance & Investment

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22.Risk-Free Rate:Use10 years Govt. Bond Yield as a proxy for therisk-free rate. Indicate any advantages or disadvantages if there areany.3.Market Risk Premium: The estimation of the expected market riskpremium is crucial. You must carefully explain what you do and anyassumption you make while estimating market risk premium.•Risk Premium EstimationTo estimate the risk premium, first, you have to estimate the expected market return. Assume that expected return on the market portfolio is related to a Macroeconomic variable, e.g., GDP. Then use the expected changes in the macroeconomic variable, with appropriate possible returns and appropriate probabilities (assume these returns and probabilities based on your analysis of current economic condition) to estimate expected return on the market portfolio. Then, subtract the RFR from the expected market return and arrive at your market risk premium. Once you estimate these three figures (1-3) you will be able to estimate the required rate of return or discount rate following CAPM that can be used in valuation models. Important points to be covered in Part 2: •Explain any assumptions made in implementing the models.•Where appropriate, explain how you arrived at the variablesyou are using. E.g., it is not enough to say you are assuming a2% growth rate. You would be expected to providejustification/motivation of how you arrive at 2% growth rate.•Provide an indication of the sensitivity of your valuations tochanges in the assumptions. E.g. perform sensitivity analysisfor each mode

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Withdrawal Of Cipralex

1.Please review the following PDF file (“ Swaps That Shoot an Industry: Procter & Gamble vs. Bankers Trust ”). Then prepare a case study summarizing your findings. Please use the selected Review Questions at the end of the case for reference (for examples, #1, #5, #7 -8, #13 -14, and #16 ...

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The Public Market

H.LUNDBECK – STRONG BUY Equity Research • Health care • 10 November 2011 • Jyske Markets ANALYSIS Q3 2011 ACCOUNTS Publisher: Jyske Markets Vestergade 8-16 DK - 8600 Silkeborg Senior Equity Analyst Frank Hørning Andersen +45 89 ...

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Competitor Analysis

1 Business proposal Name Institution Date Financial valuation 2 Introduction  The business idea pertain to burg -junk.  This is an OSR restaurant chain in Australian company.  The current food industry in Australia is dominated with junky fi ...

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The Food Industry

About the burg -junk Its headquarters are located in Melbourne. They are constantly working with dedication and passion for serving customers with better services to satisfy them. Burg -Junk holds a 40 per cent share this year in Australia. The company mainly specializes in Ch icken. It uniqu ...

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