Microsoft corporation
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 Microsoft Corporation
2. In addition, find the beta of 3 different companies within the same industry as your company (Group Project).
3. Explainto your classmates what beta means and how it can be used for managerialand/or investment decision
4. Whydo you think the beta of your company (individual project) and those of the 3 companies you found are different from eachother? 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 Budgetin
g
Part 1: Bet
a
Visit the following web site or other websites
:
Yahoo Finance
1.
Search for the beta of
Microsoft Corporation
2.
In addition, find the beta of 3 differe
nt companies within
the same industry as your company (Group Project)
.
3.
Explain
to your classmates what beta means and how
it can be used for managerial
a
nd/or investment decisio
n
4.
Why
do you think the beta of your company (individual
project) 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 Budgetin
g
Before yo
u respond to Part 2 of discussion 6 review the
following information on Capital Budgeting Technique
s
Capital Budgeting Decision Method
s
CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES
)
Beta and Capital Budgeting
Part 1: Beta
Visit the following web site or other websites:
Yahoo Finance
1. Search for the beta of Microsoft Corporation
2. In addition, find the beta of 3 different companies within
the same industry as your company (Group Project).
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 (individual
project) 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)
