The Straw Ban Debate Poster Discussion Please pay close attention to the requirements below. The assigment should match the requirment below. For this

The Straw Ban Debate Poster Discussion Please pay close attention to the requirements below. The assigment should match the requirment below.

For this extra credit assignment, you are required to apply the concepts covered in this course and create a poster, flyer, or art piece on the topic of the straw ban debate.Be intentional and thoughtful with your explanation. If you choose to create a poster or art piece by hand, make sure to take a photo of it and include the photo with your explanation.

Requirements:

Poster, flyer, art piece | 4 pts.
Demonstrating artistry and creativity
Representation of Advocacy for disability rights, dignity, and/or life quality

Paragraph Explanation | 1 pt.

Explain what your image represents and why you chose to create this piece.

Reminder: Only one extra credit option will be accepted for this course. Bowen Quan
Oct 10, 2019
Fin-468
Estimating a Market Risk Premium
Tencent have break down its revenue into two regions, China and other country. Hong Kong’s
equity risk premium is 6.65%. Tencent’s equity risk premium is 10.42%.
Analyzing the Risk Regression
The date from Bloomberg shows Tencent’s beta is 1.456 and the Alpha (intercept) of Tencent is
0.111. According to its correlation to S&P between 2010-2019, the expect return of Tencent is
Y=1.456X+0.111.
Tencent’s stock price was HK$114 on October 13, 2014. As of today, Tencent’s stock price is
HK$324, with a growth rate of 184.21% in five years. Compared with the same period, the Hong
Kong Hang Seng Index grew by 12.28% in five years. Compared with the Hang Seng Index,
Tencent’s share price growth has been spurred, and Tencent’s stock has performed very well.
The actual Jensen’s Alpha is different with stock intercept. According to the date and calculation,
Tencent regression Alpha is 0.111, the Risk free of Hong Kong is 1.3%, and Tencent regression
Beta is 1.456. The Jensen’s Alpha is 33.75, Tencent has very good performance.
According to Bloomberg R squared is 42.7%, which means Tencent has 42.7% risk from market.
Tencent has 57.3% of firm-specific Risk proportion, which implies Tencent has 57.33% risk
come from firm- specific sources. Tencent is a diversity company. The return is balanced by
market and firm sources.
According to the research, Tencent’s standard deviation is 1.8, Tencent Beta form Bloomberg is
1.456. The range of estimate with 67% probability is 0.25 to 2.662. The range of estimate with
95% probability is -0.254-3.166. Use the CAPM model, the required Return of Tencent is
10.38%
Tencent can be divided into 4 segments. In the first quarter of 2019, video games contributed
28.5% of Tencent’s total revenue, compared with 36.7% in the same period last year. Due to the
growth of real-time streaming media and video subscriptions, social network revenue increased
by 25%. The sector accounts for 22.9% of total revenue. Tencent’s advertising revenue increased
by 38% this quarter. Advertising accounts for 20% of the company’s quarterly revenue. The
“other” category, consisting of financial technology and cloud computing, grew by 71.8%,
accounting for 28.5% of total revenue.
Bowen Quan
Sep 19, 2019
Fin-468
Abstract
Tencent, born in November 1998 in Shenzhen, China, is an Internet-based technology
and culture company. Its mission is to “improve the quality of human life through Internet
services.” Tencent adheres to the business philosophy of “everything based on user value”
and provides high-quality Internet comprehensive services for hundreds of millions of
netizens.
Content
The founders of most technology companies use a dual shareholding structure to
secure their control in the absence of equity. Dual-class share structure, also known as AB
shareholding structure, which divides the company’s stock into low-voting stocks (Ashares) and high-voting stocks (B-shares), of which A-shares are issued and circulated.
Anyone (such as ordinary shareholders, investors) can hold; and B shares are not issued,
or automatically converted to A shares once sold (but A shares cannot be converted into B
shares), usually only initiated by the company People or company executives hold.
As of December 31, 2018, Ma Huateng held 8.61% of the shares and was the second
largest shareholder. Tencent’s largest shareholder remained the South African media and
investment company Naspers, holding 31.1%.
Tencent did not expressly set up a dual shareholding structure. However, it was
reported that “South Africa’s MIH Group gave full confidence to Ma Huateng and gave up
voting rights in the shares held at the beginning. Therefore, although the share of Ma
Huateng’s shareholding in Tencent is not high, the company’s specific the management is
mainly responsible for him and several co-founders.”
Liu Chiping, male, was born in Beijing in 1973. He is currently an executive director
of Tencent. He received his MBA from Northwestern University’s Kellogg School of
Management in 1995. He holds a bachelor’s degree in electrical engineering from the
University of Michigan in 1998 and a master’s degree in electrical engineering from
Stanford University. After graduation, he worked as a management consultant at McKinsey
& Company and later as a Goldman Sachs Asia Investment Bank. Executive Director of
the Department and Chief Operating Officer of the Telecommunications, Media and
Technology Industry Group.In 2005, he joined Tencent as the company’s chief strategic
investment officer, responsible for corporate strategy, investment, mergers and acquisitions
and investor relations. In February 2006, he served as president of Tencent, helping board
chairman and CEO Ma Huateng responsible for the day-to-day management of the
company. And operations. In March 2007, he was appointed as an executive director.
Xu Chenxi, obtained a master’s degree in computer application from Nanjing
University in 1996. Chief Information Officer of Tencent. Mr. Xu is one of the main
founders of Tencent. He has been employed by Tencent Group since 1999 and is
responsible for the strategic planning and development of website property and community,
customer relations and public relations. Prior to his current position, Mr. Xu worked in the
Shenzhen Data Communication Bureau and accumulated extensive experience in software
system design, network management and marketing and sales management.
Tencent’s 2017 annual report shows that President Liu Chiping (Martin) has a total
salary of 237 million yuan, an increase of 94%. Ma Huateng’s salary in 2017 was only
45.93 million yuan. According to the annual report, the top 12 executives of Tencent
(including Ma Huateng, Liu Chiping and other core executives) have a total salary of 1.46
billion yuan. Among them, there are 2 in the range of HK$2.15-6.15 billion, 2 in the range
of 1.15-165 million, 5 in the range of 0.65-1.15 billion, 2 in the range of 0.4-65 million,
and between 800,000 and 15 million. 1 person.
References
https://www.tencent.com/zh-cn/company.html
https://finance.yahoo.com/quote/TCEHY/holders?p=TCEHY
Project Instructions
How is the project structured?
1.
Each individual will select a non-financial firm to analyze.
– Financial subsidiaries of automotive companies complicate the process. Utilities and MLPs
are similarly poor choices.
– Companies should be publicly traded and have at least five years of trading history and
audited financial statements.
– Should two students select the same firm, the first student to email me wins. Each student
should identify their top 3 choices by the deadline.
– Course examples (i.e. Disney, Tata, Vale, Baidu, and Deutsche Bank) are not options.
2. This is a semester-long project with analyses that follow the lectures.
– Each student is responsible for completing and delivering his or her company’s analyses.
4. I will announce in class intermediary deadlines (I will collect intermediate analyses to help you
with the project). I will not grade them but you must turn all of them.
5. At the end of the semester, each student will deliver a professional report summarizing results
and conclusions.
6. At the end of the semester, each student will prepare and present a brief power
point
presentation of their company analysis.
– This allows another dimension for evaluation and fostering communication skills.
How will the project be graded?
1. I assess completion of intermediate analyses.
2.
I assess overall quality of financial analysis and professionalism in the report.
3.
I assess the quality of presentation skills, including clarity, knowledge, and engagement.
Formatting:
1.
The paper will be graded on both analysis and professionalism.
2.
Do not rehash what should be common knowledge. For example, do not describe the
regression procedure for estimating beta; but do explain why your firm has the beta it does.
3. Use charts, graphs, and tables to summarize data and findings. Use legible font (10-12 point
for tables and figures).
4. The questions below are designed to guide you through the project. Each firm will have
additional unique risk and opportunities to explore. Answering each question does not guarantee
any certain grade.
5. Reference all data sources, but do not include them in your report (i.e., don’t include Bloomberg
pages or annual reports; just reference them.)
6. Be brief. Written reports should be less than 15 pages (plus appendix) but at least 10 pages
with 12 point font and 1.5 line spacing.
7. The presentation will be 7 minutes maximum. Prepare an accompanying PowerPoint, and focus
on the highlights of your company analysis.
How should we structure our analyses?
I list below some key questions along with the class they relate to. Note that these questions
are not meant to be comprehensive and you can/should add any other interesting topics or findings
relevant to your company.
Topic
I. Corporate
Governance
Analysis
Key Questions
•
Is there separation between management and ownership? If so, how
responsive is management to stockholders?
•
How does this firm interact with financial markets? How do markets
get information on the firm?
•
How does this firm view its social obligations and manage its image?
II. Stockholder
•
Who is the average investor in this stock? (Individual or pension fund,
taxable or tax-exempt, small or large, domestic or foreign?)
Analysis
•
Who is the marginal investor in this stock?
•
*What is the risk profile of your company? How much overall risk is
there in this firm? Where is this risk coming from (market, firm,
industry, or currency)? How is the risk profile changing?
III. Risk and
•
*What is the performance profile of an investment in this company?
What return would you have earned investing in this company’s stock?
Return
Would you have under- or out-performed the market? How much of
the performance can be attributed to management?
•
How risky is this company’s equity? Why? What is its cost of equity?
•
How risky is this company’s debt? What is its cost of debt?
•
What is this company’s current cost of capital?
•
Is there a typical project for this firm? If yes, what would it look like in
terms of life (long or short term), investment needs and cash flow
IV. Measuring
Investment
Returns
patterns?
•
*How good are the projects that the company has on its books
currently?
•
*Are the projects in the future likely to look like the projects in the
past? Why or why not?
•
What are the different kinds or types of financing that this company
has used to raise funds? Where do they fall in the continuum between
debt and equity?
V. Capital
Structure
•
How large, in qualitative or quantitative terms, are the advantages to
this company from using debt?
Choices
•
How large, in qualitative or quantitative terms, are the disadvantages
to this company from using debt?
•
Does the firm appear to have too much or too little debt?
•
Based upon the cost of capital approach, what is the optimal debt ratio
for your firm?
VI. Optimal
Capital
Structure
•
Bringing in reasonable constraints into the decision process, what
would your recommended debt ratio be for this firm?
•
*Does your firm have too much or too little debt
o
relative to the sector?
o
relative to the market?
•
If your firm’s actual debt ratio is different from its “recommended”
debt ratio, how should they get from the actual to the optimal? In
particular,
o
Should they do it gradually over time or should they
do it right now?
VII. Mechanics
o
of Moving to the
Should they alter their existing mix (by buying back
stock or retiring debt) or should they take new
Optimal
projects with debt or equity?
•
•
o
Should it be short or long term?
o
What currency should it be in?
o
What special features should the financing have?
How has this company returned cash to its owners? Has it paid
dividends, bought back stock, or spun off assets?
VIII. Dividend
Policy
What type of financing should this firm use? In particular,
•
Given this firm’s characteristics today, how would you recommend
that they return cash to stockholders (assuming that they have excess
cash)?
•
last few years? How much did it actually return?
IX. A
Framework for
How much could this firm have returned to its stockholders over the
•
Given this dividend policy and the current cash balance of this firm,
Analyzing
would you push the firm to change its dividend policy (return more or
Dividends
less cash to its owners)?
•
How does this firm’s dividend policy compare to those of its peer
group and to the rest of the market?
•
What type of cash flow (dividends, FCFE, or FCFF) would you choose to
discount for this firm?
•
What growth pattern (Stable, 2-stage, 3-stage) would you pick for this
firm? How long will high growth last?
X. Valuation
•
*What is your estimate of value of equity in this firm? How does this
compare to the market value?
•
**What is the “key variable” (risk, growth, leverage, profit margins,
etc.) driving this value?
•
If you were hired to enhance value at this firm, what would be the path
you would choose?

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