Did you see Vueling case
Did you notice the Vueling case? How is this possible that an investment bank sets the objective price of its shares in €2.50 per share upon the 2nd of October, 2007, just after replacing Vueling shares at €31 per share in June, 2007?
Expert
It is factual. After placing the shares of Vueling at €30 per share in December, 2006 and at €31 per share in June, 2007 and the 2nd of October, 2007 and the investment bank set the objective price at €2.5 per share.
1st December, 2006. IPO of Vueling at €30 per share. The first day, closing price was €32.99 per share.
23 February, 2007. Maximum at €46.7 per share.
6th June, 2007. Placement of the 20.97 percent of the share capital of Vueling (shares of Apax) at €31 per share.
19th July, 2007. One of the placement banks recommends the selling at the objective price at €20 per share.
August 2007. Vueling admits not being able to fulfil the business plan: that the shares fall in 30%.
31st August, 2007. New objective price of Vueling: €12 per share.
3rd October, 2007. The same placement bank values Vueling at €2.5 per share. Quotation: €8 per share.
23rd October, 2007. The bank increases the value of a share from €2.5 at €13, and this even recommends to 'selling.'
28th December, 2007. The last quotation of year 2007 is the value of share from €8.95 per share.
If it is possible to make abnormal profits based on fundamental analysis, you can conclude that the market is: A) Not weak-form efficientB) Weak-form efficientC) Not semi-strong-form efficientD) Semi-strong-form e
Berks Corporation is expecting to have EBIT next year of $12 million, with a standard deviation of $6 million. Berks have $30 million in bonds with coupon of 10%, selling at par, which are being retired at the rate of $2 million annually. Berks also have 100,000 share
Value Chain: The value chain is a theory from business management that was first described and popularized Michel Porter in his 1985 best seller, Competitive Advantage: Creating and Sustaining Superior Performance.
Does financial leverage (i.e. debt) have any influence on the Free Cash Flow, upon the Cash Flow to Shareholders, upon the growth of the company and upon the value of the shares?
Explain breakthroughs on low-discrepancy sequences.
Describe the term Zero Coupon Bonds in Corporate Bonds?
Explain the branching structure of the binomial model.
I cannot seem to begin a valuation. In order to compute E + D = VA (FCF; WACC) I require the WACC and to compute the WACC I need D and E. Where must I start?
Quetion: A private equity fund invests $100 million into a portfolio company and receives 100% of the preferred stock and 80% of the common stock of the company. The preferred stock carries a face value of $1
Who published a book regarding option formula and risk neutrality?
18,76,764
1961690 Asked
3,689
Active Tutors
1419681
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!