3 Risk and Capital

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Title: 3 Risk and Capital
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Subject: Business
Date: September 7, 2004
Length: 4 / 1047
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As of NYSE closing on July 26, 2006 the price of IBM stock is $75.83. Since, my theoretical price using the CGM method was only $9.51; this means there was a large difference between the theoretical and actual amounts. This is most likely due to the assumed value being off...
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This is most likely due to the assumed value being off. Most likely, because this calculation is dependent on a stock's value growth is at a constant rate. The CGM method relies on the growth rate remaining constant indefinitely (Gallagher & Andrew) whereas, in actuality there is no definite or constant in the future of any stock...
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Common topics in this essay:
Capital Asset Pricing and Discounted Price Flow Models   IBM'S STOCK PRICE   Market Price   Predictability Of Stock Price Returns In Select Emerging Markets   Price Discrimination   Price Fixing   Price Makers And Price Takers   price competition   price discrimination   Shall we put up our price   THEORETICAL STOCK PRICES   The Advantages And Disadvantages Of Free Market Economy, Price Determination With Market Forces. And Government Intervention With Free Market Equilibrium Price And The More Suitable Model For The Sudan   What Price Freedom?   Gas Price Analysis   Foreign Exchange Rate Sensitivity and Stock Price  
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