Pakistan Banks Ratios

What factors should Amerada management consider when evaluating the reposed st vagabondgy? . Calculate Marinades debt-to- note value ratio using both the book value and market value of the firms equity. How does Marinades debt-to-value ratio compare to that of other discount brokerage and investment service companies in Exhibit 4? In general terms, how does leverage affect the rockiness of a firms equity? 3. Amerada has a short history of trading, so its beta cannot be computed precisely using its own historical data.Exhibit 4 provides rough choices for comparable firms. Which of these firms do you think are appropriate to use as comparable to determine the beta of Marinades planned advertising and technology investments? Why? 4. using the stock price and return data in Exhibits 5 and 6, estimate the CAMP beta and Fame-French factor sensitivities for the stocks of comparable firms. 5. Estimate the weighted-average cost of capital for Marinades proposed expansion. What risked rate d o you use?Are the cost-of-capital estimates similar using the CAMP and Fame-French three-factor models? Guidelines You may work on the case in groups of 3 or 4 students. revel hand-in one write-up per group. All members of the group should be prepared to discuss the case in class. State clearly any assumptions you make and provide enough schooling so that a reader can follow your analysis. I would expect the case write-up to be two to three pages plus supporting tables.