Weighted Average Trading Price
What is the Weighted Average Cost of Capital for a company?
I am after the Weighted Average Cost of Capital for a company
Use the Security Market Line: The risk free rate is 0.5%, the beta for the stock is 1.4 and the required rate of return for the stock market is 7.8%. What is the required rate of return for the stock?
The company has $700,000 of debt just issued at par and with a coupon of 6%, and it’s still trading at par. An older debt issue of $1 million has a yield of 5.5% (the rate is lower than the new debt issue because it’s shorter in duration). The company’s tax rate is 35%. Figure the weighted average after-tax cost of debt for the firm.
If the company has 75,000 shares of stock outstanding priced at $60/share, what is its Weighted Average Cost of Capital (WACC)?
This sounds like a homework question..
Here’s a link that should come in handy.. I hope it helps..
http://www.exinfm.com/board/weighted_average_cost_of_capital.htm
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Price of Petroleum $98.77 High Quality Content by WIKIPEDIA articles The price of petroleum as quoted in news generally refers to the spot price per imaginary barrel (159 liters) of either WTI/light crude as traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange (ICE, into which the International Petroleum Exchange has been incorporated) for delivery at Sullom Voe. The price of a barrel of oil is highly dependent on both its grade, determined by factors such as its specific gravity or API and its sulphur content, and its location. The vast majority of oil is not traded on an exchange but on an overthecounter basis. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the imported refiner acquisition cost, the weighted average cost of all oil imported into the US, as its world oil price. Author: Surhone, Lambert M./ Tennoe, Mariam T./ Henssonow, Susan F. Binding Type: Paperback Number of Pages: 160 Publication Date: 2010/08/21 Language: English Dimensions: 6.00 x 9.02 x 0.37 inches |
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Financial Markets and Trading (Hardcover) $121.51 "Financial Markets and Trading Strategies covers three main parts: Market organization and microstructure theory, which will contain an overview of modern financial markets for equities, FX, and fixed income. There will be a description on various market types and market price formation with different types of traders and orders. Major theoretical microstructure models will be presented, as also concepts of the agent-based modeling of financial markets and important empirical properties of equity and FX markets. Common trading strategies and back-testing will summarize the concepts used in technical analysis and arbitrage trading (such as pairs trading and mean-reversion strategies). There will be a description of performance criteria and back-testing oftrading strategies with re-sampling techniques and an outline of other ideas used in optimal order execution, such as optimal order slicing and maker-versus-taker strategies. The appendix will include Probability distributions and time series analysis. For self-contained presentation, there will be a description of the mathematical methods used in formulating trading strategies and their back-testing. There will be a focus on the linear regression, autoregressive and moving average models, trends, co-integration, and conditional heteroskedasticity. There will also be an introduction to resampling techniques, such as bootstrap and MCMC"– |
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Financial Markets and Trading By Schmidt, Anatoly $93.99 Financial Markets and Trading Strategies covers three main parts: Market organization and microstructure theory, which will contain an overview of modern financial markets for equities, FX, and fixed income. There will be a description on various market types and market price formation with different types of traders and orders. Major theoretical microstructure models will be presented, as also concepts of the agentbased modeling of financial markets and important empirical properties of equity and FX markets. Common trading strategies and backtesting will summarize the concepts used in technical analysis and arbitrage trading (such as pairs trading and meanreversion strategies). There will be a description of performance criteria and backtesting oftrading strategies with resampling techniques and an outline of other ideas used in optimal order execution, such as optimal order slicing and makerversustaker strategies. The appendix will include Probability distributions and time series analysis. For selfcontained presentation, there will be a description of the mathematical methods used in formulating trading strategies and their backtesting. There will be a focus on the linear regression, autoregressive and moving average models, trends, cointegration, and conditional heteroskedasticity. There will also be an introduction to resampling techniques, such as bootstrap and MCMC Author: Schmidt, Anatoly B. Series Title: Wiley Finance Subtitle: An Introduction to Market Microstructure and Trading Strategies Publication Date: 2011/08/09 Number of Pages: 194 Binding Type: Hardcover Language: English Depth: 1.00 Width: 6.25 Height: 9.25 |
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Energy Price Risk: Trading and Price Risk Management $419.59 Energy Price Risk is the practitioners guide to optimizing company performance using the correct price risk strategies and tools. Based on the authors extensive experience in the commodity derivatives industry, it comprehensively covers the full spectrum of the energy complex, including crude oil, petroleum products, natural gas, LPG/LNG, and electricity. Using many worked examples, this book offers practical insights and solutions. Author: James, Tom Series Title: Finance and Capital Markets Series Binding Type: Hardcover Number of Pages: 554 Publication Date: 2003/02/22 Language: English Dimensions: 9.68 x 6.26 x 1.29 inches |
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Trading Price Action Trading Ranges by Brooks, Al Edition ILL, 1 $25.49 Praise for Trading Price Action Trading RangesAl Brooks has written a book every day trader should read. On all levels, he has kept trading simple, straightforward, and approachable. By teaching traders that there are no rules, just guidelines, he has allowed basic common sense to once again rule how real traders should approach the market. This is a must-read for any trader that wants to learn his own path to success.—Noble DraKoln, founder, SpeculatorAcademy.com, and author of Trade Like a Pro and Winning the Trading GameA great trader once told me that success was a function of focused energy. This mantra is proven by Al Brooks, who left a thriving ophthalmology practice to become a day trader. Al’s intense focus on daily price action has made him a successful trader. A born educator, Al also is generous with his time, providing detailed explanations on how he views daily price action and how other traders can implement his ideas with similar focus and dedication. Al’s book is no quick read, but an in-depth road map on how he trades today’s volatile markets, complete with detailed strategies, real-life examples, and hard-knocks advice.—Ginger Szala, Publisher and Editorial Director, Futures magazineOver the course of his career, author Al Brooks, a technical analysis contributor to Futures magazine and an independent trader for twenty-five years, has found a way to capture consistent profits regardless of market direction or economic climate. And now, with his new three-book series—which focuses on how to use price action to trade the markets—Brooks takes you step by step through the entire process.In order to put his methodology in perspective, Brooks examined an essential array of price action basics and trends in the first book of this series, Trading Price Action TRENDS. Now, in this second book, Trading Price Action TRADING RANGES, he provides important insights on trading ranges, breakouts, order management, and the mathematics of trading.Page by page, Brooks skillfully addresses how to spot and profit from trading ranges—which most markets are in, most of the time—using the technical analysis of price action. Along the way, he touches on some of the most important aspects of this approach, including trading breakouts, understanding support and resistance, and making the most informed entry and exit decisions possible. Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options. |
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Price Action Trading Ranges Bar by Bar (Hardcover) $70.33 The introduction to this book will be short and related only to this volume. The market is either trending or in a trading range and it is often transitioning from one to the other. When the market is transitioning from a trading range into a trend, it is breaking out. Since trends were just discussed in the first book, this second book begins with how trading ranges turn into trends, which are now familiar to the reader. It explains why breakouts form and why they end, which is always at some kind of support or resistance area. The market gets drawn quickly to these areas and because of this pull, I refer to them as magnets. As the breakout is unfolding, traders can use several mathematical techniques to measure where the trend will likely end and then begin to form a trading range, and these measured moves are discussed in detail. Once the market reaches a magnet, it then pauses and pulls back, and usually then resumes. Pullbacks are reliable setups and the book describes them and how to trade them in detail. If a pullback grows so large that it is uncertain if the trend will resume or reverse, it has become a trading range. Most markets are in trading ranges most of the time and therefore most trades that traders make are within trading ranges. Understanding them and how to trade them is critical to anyone trying to make a living as a trader. Traders need to know how to place orders to get into and out of trades and it is useful to know how to scale into and out of positions. Also, mathematics is the basis for all trading. Every trader asks himself, “Will I make money if I take this trade?” This means that the traders is making a statistical analysis of what he sees based on risk, reward, and probability, and understanding this math makes trading less stressful and more profitable. |
