Investment Project Part III Application of the class content to your sample (sselected companies)). Instructions :

Investment Project Part III

Application of the class content to your sample (sselected companies))..

Instructions : Choose two theories or practices discussed in Part II of the Course Content and apply them to your companies.. You should send your work in the Assignment Box as an attachment..

The topics included in Part II

1.. Stock valuation,, portfolio management strategi es,, bond valuation .

2.. Markets,, forward,, Futures,, Options,, Swaps,, Convertibles .

Example s of the theories i nclude::

1.. T he determinan ts of paying divide nd s..

If you choose theories or practices related to dividends you can make your analysis by:: ( 1 ) d escribe the tendency of paying dividends for the selected companies , ( 2)) explain the reasoning of paying dividends ( theoretically and include the references)),, and ( 3 ) d escribe the other practices that companies can choose instead of paying dividends..

2.. T he relation between equity and bonds .

If you choose theories or practices related to capital structure you can make your analysis by:: ( 1 ) d escribe the tendency of issuing bonds or long term debt for the selected companies , ( 2)) explain t he r easoning o f issuing debts ( theoretically and include the references)),, and ( 3 ) d escribe the other practices that companies can ch oose instead o f issuing debts .

3.. Derivatives

If you choose theories or practices related to derivatives you can make your analysis by:: ( 1 ) d escribe the tendency of entering in derivatives contracts for the selected companies , ( 2)) explain t he reasoning of entering into derivatives contracts ( theoretically and include the references)),, and ( 3 ) d escribe the practices that companies can choose to motivate investors to make derivatives contracts .

Rem inder:: the above examples are not compulsory,, you might consider any other examples from the topics in Part II of your Class Content..

You have to include all references from where you obtained the data//iinformation .

Example of references::

Brennan,, M.. (11970)).. Taxes,, market valuation,, and corporate financial policy.. National Tax Journal , December,, 417 - 427..

Brickley,, J.. A.. (11982)).. Shareholder wealth,, information signaling and the specially designated dividend.. Journal of Financial Economics , 12,, 187 - 209..

Brigham,, E.. F.. and Gapenski,, L.. C.. (22002)).. Financial management:: Theory and practice (110 th ed..)).. United States:: Thomson Learning,, Inc..

Brook,, Y..,, Charlton,, W.. and Hendershott,, R.. (11998)).. Do firms use dividends to signal large future cash fl ows?? Financial Management , 27,, 46 - 57..

Charest,, G.. (11978)).. Dividend information,, stock returns and market efficiency.. Journal of Financial Economics , 6,, 297 - 330..

DeAngelo,, H.. and DeAngelo,, L.. (11990)).. Dividend policy and financial distress:: An empirical inve stigation of troubled NYSE firms.. Journal of Finance , 45,, 1415 - 1431..

DeAngelo,, H.. and Masulis,, R.. W.. (11980)).. Optional capital structure under corporate and personal taxation.. Journal of Financial Economics , March,, 134 - 147..

DeAngelo,, H..,, DeAngelo,, L.. and Sk inner,, D.. J.. (11996)).. Reversal of fortune:: Dividend signaling and the disappearance of sustained earnings growth.. Journal of Financial Economics , 40,, 341 - 371..

Dempsey,, S.. J..,, Laber,, G.. and Rozeff,, M.. S.. (11993)).. Dividend policies in practice:: Is there and in dustry effect??.. Quarterly Journal of Business and Economics , 32 (44)),, 3 - 13..

Dewenter,, K.. L.. and Warther,, V.. A.. (11998)).. Dividends asymmetric information and agency conflicts:: Evidence from a comparison of the dividend policies of Japanese and U..SS.. firms.. Jou rnal of Finance , 53,, 879 - 904..

Dielman,, T.. and Oppenheimer,, H.. (11984)).. An examination of investor behavior during periods of large dividend changes.. Journal of Financial and Quantitative Analysis , 19,, 197 - 216..

Dyl,, E.. and Weigand,, R.. (11998)).. The information content of dividend initiations:: Additional evidence.. Financial Management , 27,, 27 - 35..

Easterbrook,, F.. H.. (11984)).. Two agency - cost explanations of dividends.. The American Economic Review , 74 (33)),, 650 - 659.. 72 I SSN 1541 - 8561 FORUM EMPRESARIAL 12,, 2 (DDICIEMBRE , 2007))

Elton,, E.. and Gruber,, M.. (11970)).. Marginal stockholder tax rates and clientele effect.. Review of Economics and Statistics , 52 (FFebruary)),, 68 - 74..

Escherich,, F.. (22000)).. Deliberating on dividend policy.. Directors and Boards , 25 (11)),, 33 - 38..

Fama,, E.. (11974)).. The empirical relationships between dividend and investment decisions of firms.. American Economic Review , June,, 304 - 314..

Fama,, E.. and Babiak,, H.. (11968)).. Dividend policy:: An empirical analysis.. Journal of American Statistical Association , December,, 1132 - 1161..

Fama,, E.. F.. and French,, K.. R.. (11998)).. Taxes,, financing decisions,, and firm value.. Journal of Finance , 53,, 819 - 829..

Fama,, E.. F.. and French,, K.. R.. (22001)).. Disappearing dividends:: Changing firm charact eristics or lower propensity to pay.. Journal of Financial Economics , 60,, 3 - 43..

Gordon,, M.. J.. (11959)).. Dividends,, earnings,, and stock prices.. The Review of Economics and Statistics , 99 - 105..

Goshen,, Z.. (11995)).. Shareholder divined options.. Yale Law Journal , 104 (44)),, 881 - 932..

Goddard,, J..,, McM illan,, D..,, Wilson,, J.. (22006)).. Dividend smoothing vs.. dividend signaling evidence from UK firms,, Managerial Finance , 32,, 6,, 493 - 504..

Harden,, J.. W..,, Biggart,, T.. B..,, and Richmond,, K.. A.. (22003)).. " Jobs and Growth Tax Relief Reconciliation Act of 2003:: A Financial Professional ' s Overview " , Journal of Financial Service Professionals,, 57 (55)),, 36 - 44

Healy,, P.. M.. and Palepu,, K.. G.. (11988)).. Earnings information conveyed by dividend initiations and omissions.. Journal of Financial Economics , 21 (22)),, 149 - 176..