Regulatory Environment Post 2008 on Business Plan

Open, View, and/or
Download this Document

Total Length: 1582 words ( 5 double-spaced pages)

Total Sources: 1

Page 1 of 5



g = Growth rate in dividends

DPS = Cathay Bank has a dividend of $0.010

Ks = 6% + (6.8%) * 1.0 = 12.8% (we employ a Beta of 1 since it should be the same as the one used for the market during period of stable growth)

g = 5.53% (3.53% inflation + 2% GDP growth).

V = 0.010 * (1.055) / (.1280-.0553)

V = $145

Rate of return

Rate of return = [Dt + (Pt - Pt-1) / Pt-1], where'd denotes dividends while P. is for the stock price. The value (Pt - Pt-1) is denotes the capital gain on the stock.

Stuck Writing Your "Regulatory Environment Post 2008 On" Business Plan?

View All Our Example Regulatory Environment Post 2008 on Business Plan

Have A Custom Example Essay Written



If we consider the performance of Cathay from 12/01/2008 up to 12/01/2011 with the Starting price/share of $16.16 and Ending price/share of $13.60, We find that

The rate of Return is = 0.105 +(13.60-16.6)/16.6

= -47.33

Conclusion

It is not worth buying the common stock as a result of the relative low rate of return. Cathay Bank's strong market position among the Japanese and Japanese-American population positions should be used to its advantage in expanding its business portfolio so that it may become profitable. A review of the general behavior of the common stock from Cathay Bank reveals a.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Regulatory Environment Post 2008 On" (2011, December 07) Retrieved May 20, 2024, from
https://www.aceyourpaper.com/essays/regulatory-environment-post-2008-48288

Latest MLA Format (8th edition)

Copy Reference
"Regulatory Environment Post 2008 On" 07 December 2011. Web.20 May. 2024. <
https://www.aceyourpaper.com/essays/regulatory-environment-post-2008-48288>

Latest Chicago Format (16th edition)

Copy Reference
"Regulatory Environment Post 2008 On", 07 December 2011, Accessed.20 May. 2024,
https://www.aceyourpaper.com/essays/regulatory-environment-post-2008-48288
   

Open, View, and/or
Download this Document
order custom essay example