Edward J. Strafaci ~ Academic Blog

Click below to read: Twitter Dives After New Content Rules Limit Users, Offset Solid Q2 Earnings

Wednesday it was Facebook, today it is Twitter's turn. are we seeing a pattern? Please click to read: Twitter Dives After New Content Rules Limit Users, Offset Solid Q2 Earnings

https://money.usnews.com/investing/dividends/articles/2018-07-24/investors-weigh-dividends-or-growth Pioneering economist Fischer Sheffey Black opened his controversial 1976 paper, "The Dividend Puzzle," by posing the following question: Why do corporations pay  dividends ? No one would blame you if you viewed that opening sentence as something straight out of Investing for Boneheads. But Black was anything but a bonehead. Black fired a financial shot across the bow at companies that offered consistent dividends and crowed about it. Writing in refreshingly plain English for an academic, Black declared, "The harder we look at the dividend picture, the more it seems like a puzzle with pieces that just don't fit together." Nor was Black one to sit in his ivy-covered, ivory tower at MIT, where he taught finance. He went on to become a partner at Goldman Sachs Group (ticker:  GS ) and became a hero to options traders who would literally stop work t...

Difference Between Capital Asset Pricing & the Dividend Growth Model by Kevin Johnston When your small business generates excess cash, you should put that cash to work. If you look at the stock market as a place to put your cash, you need to analyze the potential for creating income or value from that investment. Two prominent models for evaluating a potential investment are capital asset pricing and dividend growth. Each has advantages and disadvantages that you should learn. Price Appreciation You can use capital asset pricing as a way of calculating whether your investment can grow. This model takes into account the risk of the marketplace in general and the risk of the company who issued the stock. You can protect yourself from the risk that one the company’s fortunes may decline by diversifying. In other words, invest in a variety of companies in case one of them fails. This can give your overall portfolio protection against business failure. You cannot protect...

How does Yahoo Finance Calculate Beta?

"  Any fact facing us is not as important as our attitude toward it for that determines our success or failure. The way you think about a fact may defeat you before you ever do anything about it. You are overcome by the fact because you think you are.  " Norman Vincent Peale

Dividend-Based Stock Valuation: The Three-Stage Dividend Discount Model   Dividend-Based Stock Valuation: The Three-Stage Dividend Discount Model Claire Boyte-White   Oct 21, 2015 Stock prices are meant to reflect the value of the issuing company, but how is that value determined? There are a number of factors that contribute to a business’ true value, including public sentiment, profitability and growth potential, but many of these factors are hard to quantify. One method of valuation popular among investors and analysts is the dividend discount method. Unlike a company’s reputation, the dividends it distributes to shareholders each year are easily quantifiable, so its stock can be valued based on the amount of dividend income an investor can reasonably expect over time. There are a number of different variations of this method that can be applied to businesses in different stages of growth, or to stocks with different dividend histories. However, the th...

Click on link for story: Tax cut triggers $437 billion explosion of stock buybacks

30-year U.S. government bond yield hits lowest since January

Over the past five years, I have interviewed over 300 successful people about their morning routines—including the chairman of the Vanguard Group, Bill McNabb; the president of MIT, L. Rafael Reif; the president of Ariel Investments, Mellody Hobson; venture capitalist M.G. Siegler; and three-time Olympic gold medalist Rebecca Soni. What I discovered is that almost  none  of the world’s best and brightest leave their mornings to chance. Based on what I learned, here is my advice about how to structure yours. Schedule your mornings There is enormous power in putting your first few morning hours to use on your most creative and fulfilling projects, making large strides on goals that would otherwise have sat on the back burner, and feeling a sense of early morning productivity that you can then take with you into the rest of the day. Having a to-do list and sticking to it can help increase your overall focus and productivity. I advocate writing out your to-do list f...

Our Economic Model Is Out Of WACC Retreived from: https://www.forbes.com/sites/dantedisparte/2018/05/28/our-economic-model-is-out-of-wacc/ In this Aug. 3, 2017, photo, packages ride on a conveyor system at an Amazon fulfillment center in Baltimore. While jobs have been lost in brick-and-mortar stores, many more have been gained from e-commerce and warehousing. Amazon accounts for much of the additional employment. (AP Photo/Patrick Semansky) The profit motive, which has driven private enterprise since prototype multinationals emerged more than 500 years ago, such as Portugal’s  Casa da Índia  or the British East India Company, is arguably a successful, if controversial, facet of business. Indeed, nothing has lifted more people out of poverty than private enterprise, despite the irony that severe income inequality is one of the top global threats, along with  climate change ,  pandemics  and the  erosion of institutional trust . Singular focus...