1. Tureves S.A. is a French biotechnology company that has developed promising t
ID: 2721857 • Letter: 1
Question
1. Tureves S.A. is a French biotechnology company that has developed promising therapies for hair loss, obesity, and wrinkled skin. Sales have doubled in each of the last three years, but so far, the company has yet to turn a profit. Which common procedures would be most, and least appropriate to value Tureves' ADRs.
2. Courtney purchased 100 shares of stock at $38 using her 70% margin account. Her maintenance margin is 40%. Courtney has no other securities in her account. At what price will Courtney receive a margin call?
3. Your portfolio consists of Microsoft and Google. On September 15, you fully invested your $1,000 on these two stocks with 50% of your money going into Microsoft (purchase price=$25 per share) and Google was purchased at $500 per share. On November 8, you sold your Microsoft at $29 a share and Google at $485 a share. Assume there is no cost to buy stocks but stocks but there is a $20 total commission charge to sell a annualize the return. Why is it necessary to compare your portfolio's performance against a certain index?
4. Dr. Zweibel's portfolio consists of four stocks: AZMN, 35%, beta 2.4; MKR, 20%, beta 1.6; ABDE, 2.5%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor?
Explanation / Answer
The procedures most appropriate to vlaue are we have to see the pricing what they are having for each process and also the cost invloved in each.
We have to value this using the discounted cash flow method or dividend disount model
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