Microsoft corporation

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)

 

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)