Category: Accounting

Do you see any evidence that Netflix acts upon shareholder pressure? Which evidence can you present?

Netflix analyses of dividend policy, CAPM beta review and Portfolio theories

Dividend policy review:
a. Provide an overview of Netflix’s dividend policy of the last 5 years (2015 until 2019). When and why did Netflix:
i. pay a cash dividend?
ii. perform a share repurchase?
iii. perform a stock split?
iv. perform a reverse stock split?

b. Can you find any evidence for the presence of a clientele effect? What would even
constitute evidence in this case?

c. Does Netflix engage in a so-called “high dividend policy”? Why or why not? Which
evidence do you find?

d. Do you see any evidence that Netflix acts upon shareholder pressure? Which evidence
can you present?

2.) Risk review:
a. Calculate Netflix’s CAPM beta coefficient and provide an interpretation

b. Compare Netflix’s CAPM efficient to the beta of its main competitor and explain in
detail:
i. how you calculated Netflix’s beta,
ii. which input parameters you used,
iii. the data of which period you processed (Hint: you need not stick to 5 years here!),
and
iv. how you selected the main competitor (Note: you need not calculate the beta of the
main competitor as well – you may look it up)
v. Which of the 2 firms is the riskier investment in your opinion? Why?

3.) Portfolio theory:
Imagine a portfolio consisting of any full percentage (0% – 100%) of Netflix stock (NFLX) and any full percentage of fellow NASDAQ listed firm Wynn Resorts (WYNN). This means you could have a “portfolio” consisting only of Netflix stocks, only of Wynn Resort stocks or any mix in between.

a. Calculate and interpret the average returns of Netflix and Wynn Resort stocks individually using stock price data from the last 5 years.

b. Calculate and interpret the standard deviations of Netflix and Wynn Resort stocks returns
individually using stock price data from the last 5 years.

c. Plot all possible portfolios resulting from the combinations of the stocks of Netflix and
Wynn Resorts in a risk-return diagram. Indicate the minimum variance portfolio (MV), the
opportunity set (a.k.a. the feasible set), the efficient frontier as well as the inefficient
frontier (a.k.a. the “idiot curve”).

d. Imagine you could only use stock price data from the last 4 months (starting November
2019). How and why would your risk-return diagram change?

Discuss the various considerations a manager has to undertake to develop a good quality design.

about Quality Management) Discuss the various considerations a manager has to undertake to develop a good quality design. What tools and techniques could be helpful in this regard and how? You may want to use an example of a product/service

Provide a report that includes your recommendations on reporting, and its effect on carrying value and earnings .

provide a report that includes your recommendations on reporting, and its effect on carrying value and earnings in each of the following situations: *The client has an equity security that has declined in value (i.e., the market value is less than what he or she paid for it [cost]). It is currently classified as available-for-sale, but the client would like to change its reporting to a trading security. *The client has a combination of investments in a portfolio that are long-term investments. The portfolio has increased in value on the whole, but there is one stock whose value has fallen by more than 60%. The client thinks that this decline in value is permanent. *The client has a portfolio of trading securities that has dropped 20% in value. He or she has another portfolio that is available-for-sale and its fair value has increased by 40%.

What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept? *

What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept? *What are the methods associated with evaluating single or periodic payments, and what is at least 1 application of each? Discuss the different methods that can be used to calculate these amounts, and explain how at least 1 of these models can be used. How can the time value of money models or formulas be used to determine the rate of return for an investment or the time it will take for a current sum to grow to a desired future amount? *Discuss the “Rule of 72” and how it can be used to estimate how long it takes for money to double at various rates of return. *Identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of market indexes such as the Dow Industrial Averages.

Provide an analysis of how American Airline Group, Inc is performing financially

Provide an analysis of how American Airline Group, Inc is performing financially by looking at the last two full years’ of financial data. This should be an interesting and compelling analysis of the financial situation at this company which is presented in a narrative format with sub-section headings for each area listed and described below.
Overview: Provide a summary of the financial trends for this company, overall.
Evaluate and explain the key changes in the company’s most recent annual Income Statement over the past two years. Are revenues increasing or decreasing? Why? What about gross and net profitability?
Evaluate and explain the key changes in the company’s most recent annual Balance Sheet over the past two years, focusing on change in the Equity section. Is the owners/stockholders’ equity of this company increasing or decreasing? Why?