Beta and Capital Budgeting

Beta and Capital Budgeting

Part 1: Beta

Visit the following web site or other websites:

Yahoo Finance

1.  Search for the beta of your company (Wendy’s)

2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).

3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision

4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.

Part 2: Capital Budgeting

Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques

Capital Budgeting Decision Methods

CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

• Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?

Beta and Capital Budgeting

Part 1: Beta

Visit the following web site or other websites:

Yahoo Finance

1.  Search for the beta of your company (Wendy’s)

2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).

3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision

4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.

Part 2: Capital Budgeting

Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques

Capital Budgeting Decision Methods

CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

• Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?

• Why might ethical companies benefit from a lower cost of capital than less ethical companies?

• Beta and Capital Budgeting
• Part 1: Beta
• Visit the following web site or other websites:
• Yahoo Finance
• 1.  Search for the beta of your company (Wendy’s)
• 2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).
• 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
• 4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
• Part 2: Capital Budgeting
• Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
• Capital Budgeting Decision Methods
• CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
• To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• • Why might ethical companies benefit from a lower cost of capital than less ethical companies?
• Beta and Capital Budgeting
• Part 1: Beta
• Visit the following web site or other websites:
• Yahoo Finance
• 1.  Search for the beta of your company (Wendy’s)
• 2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).
• 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
• 4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
• Part 2: Capital Budgeting
• Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
• Capital Budgeting Decision Methods
• CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
• To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• • Why might ethical companies benefit from a lower cost of capital than less ethical companies?

• Why might ethical companies benefit from a lower cost of capital than less ethical companies?

Beta and Capital Budgeting

Part 1: Beta

Visit the following web site or other websites:

Yahoo Finance

1.  Search for the beta of your company (Wendy’s)

2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).

3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision

4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.

Part 2: Capital Budgeting

Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques

Capital Budgeting Decision Methods

CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

• Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?

• Why might ethical companies benefit from a lower cost of capital than less ethical companies?

• Beta and Capital Budgeting
• Part 1: Beta
• Visit the following web site or other websites:
• Yahoo Finance
• 1.  Search for the beta of your company (Wendy’s)
• 2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).
• 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
• 4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
• Part 2: Capital Budgeting
• Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
• Capital Budgeting Decision Methods
• CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
• To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• • Why might ethical companies benefit from a lower cost of capital than less ethical companies?
• Beta and Capital Budgeting
• Part 1: Beta
• Visit the following web site or other websites:
• Yahoo Finance
• 1.  Search for the beta of your company (Wendy’s)
• 2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).
• 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
• 4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
• Part 2: Capital Budgeting
• Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
• Capital Budgeting Decision Methods
• CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
• To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• • Why might ethical companies benefit from a lower cost of capital than less ethical companies?
• Beta and Capital Budgeting
• Part 1: Beta
• Visit the following web site or other websites:
• Yahoo Finance
• 1.  Search for the beta of your company (Wendy’s)
• 2.  In addition, find the beta of 3 different companies within the same industry as your company (Wendy’s).
• 3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
• 4.  Why do you think the beta of your company and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.
• Part 2: Capital Budgeting
• Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques
• Capital Budgeting Decision Methods
• CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)
• To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:
• • Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.
• • Is the ultimate goal of most companies–maximizing the wealth of the owners for whom the firm is being operated–ethical? Why or why not?
• • Why might ethical companies benefit from a lower cost of capital than less ethical companies?