User Account

All Pages

Estimate the beta of hhis investment in the hockey team

Assignment Help Managerial Accounting
Reference no: EM133151562

Question - Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $34 per share. HHI has 24 million shares outstanding, as well as $60 million in debt. The founder of HHI, Harry Harrison, made his fortune in the fast food business. He sold off part of his fast food empire, and purchased a professional hockey team. HHI's only assets are the hockey team, together with 50% of the outstanding shares of Harry's Hotdogs restaurant chain. Harry's Hotdogs (HDG) has a market capitalization of $872 million, and an enterprise value of $1.07 billion. After a little research, you find that the average asset beta of other fast food restaurant chains is 0.73. You also find that the debt of HHI and HDG is highly rated, and so you decide to estimate the beta of both firms' debt as zero. Finally, you do a regression analysis on HHI's historical stock returns in comparison to the S&P 500, and estimate an equity beta of 1.34. Given this information, estimate the beta of HHI's investment in the hockey team.

Reference no: EM133151562

Questions Cloud

What is definition of each costing method : What is the definition of each costing method? Discuss how, when, and if the costing method could be used by EEC.
What role does the labor market play : What role does the labor market play when determining HR strategies? Should the HR strategy differ greatly between cost vs. differentiation focus?
Find the total labor cost : The direct labor cost of making airplanes decreases with repetition (learning curve). As a result, the cost of manufacturing of airplanes depend on the unit pro
Economically traced to cost object : In cost accounting, direct costs are easily and economically traced to cost object. On the other hand, overheads cannot be economically traced to cost object.
Estimate the beta of hhis investment in the hockey team : Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $34 per share. Estimate the beta of HHIs investment in the hockey team
Enhancing employee motivation : Imagine you are a manager with a staff of 20. Productivity and morale are at an all-time high.
What might models do better than expert admissions officers : Imagine that you are running University admissions office. A business analytics professor has suggested that you could do a better job of picking students for t
Project objectives will advance the organizational goals : Explain how the project objectives will advance the organizational goals. Evaluate the value this project will bring to the organization.
How much are the weekly payments : Question - How much are the weekly payments for a five-year, $30,000 loan that charges interest of 7%, compounded monthly

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd