Part 1: Beta Visit the following web site or other websites: Yahoo Finance (https://finance

Subject:BusinessPrice: Bought3

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Part 1: Beta

Visit the following web site or other websites:

Yahoo Finance (https://finance.yahoo.com)

1.  Search for the beta of your company (The Procter and Gamble Company)

2.  In addition, find the beta of 3 different companies within the same industry as your company (Group Project: The Procter and Gamble Company).

3.  Explain to your classmates what beta means and how it can be used for managerial and/or investment decision

4.  Why do you think the beta of your company (individual project) and those of the 3 companies you found are different from each other? Provide as much information as you can and be specific.

 

Part 2: Capital Budgeting

Before you respond to Part 2 of discussion 6 review the following information on Capital Budgeting Techniques

Capital Budgeting Decision Methods (https://www.youtube.com/watch?v=hfZ6lznPf2U)

CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES) (https://www.scribd.com/doc/37253036/Capital-Budgeting-Principles-Techniques)

 

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

• Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

• Is the ultimate goal of most companies--maximizing the wealth of the owners for whom the firm is being operated--ethical? Why or why not?

• Why might ethical companies benefit from a lower cost of capital than less ethical companies?