Investment Analysis and Stock Valuation on REDBOX company Term Paper

Investment Analysis and Stock Valuation on REDBOX company - Term Paper Example They are situated across the United States at various grocery stores, supermarkets, discount stores, pharmacies, fast food restaurants such as McDonald’s etc. The company wants to bolster its way into the hearts and minds of movie and game renters. As mentioned previously, Redbox is a futurist and so the fast-growing firm, which brags around 33,000 kiosk nationwide, plans to proffer web or internet streaming by the end of 2011 and also feels that it can double the current number of rental outlets considering its bullish trend and prospective growth opportunities (Brad Tuttle, 2011). II. Stream of Expected Returns (Cash Flows) a. Form of returns: Due to non-availability of Redbox’s financial statements, its parent company, Coinstar Inc.’s financial data is being considered. Examining the years ended December 31, 2008, 2009 and 2010, the cash flows from operating activities reduced by 35.42% to $123.89 million in 2009 and escalated by a massive 154.76% mainly due t o increase in liabilities. The cash flows from investing activities were negative in all three years analyzed; however, there was an increase of $37.13 million and $5.02 million in 2009 and 2010. Due to heavy repayment of borrowings and purchase of stock in 2010, the financing activities came about again as a negative figure (-$122.046 million) after a meager one in 2008 (-$602,000). b. Time pattern and growth rate of returns: As mentioned in the previous part, a yearly time pattern has been considered. The growth rate of return is known as the Sustainable Growth Rate and is computed as follows: g = RR (Retention Ratio) * ROE (Return on Equity). As there are no dividend streams being paid by the company, RR will be equal to 100% and as ROE = 22.47% (according to Yahoo Finance, Coinstar Inc.... Form of returns: Due to non-availability of Redbox’s financial statements, its parent company, Coinstar Inc.’s financial data is being considered. Examining the years ended December 31, 2008, 2009 and 2010, the cash flows from operating activities reduced by 35.42% to $123.89 million in 2009 and escalated by a massive 154.76% mainly due to increase in liabilities. The cash flows from investing activities were negative in all three years analyzed; however, there was an increase of $37.13 million and $5.02 million in 2009 and 2010. Due to heavy repayment of borrowings and purchase of stock in 2010, the financing activities came about again as a negative figure (-$122.046 million) after a meager one in 2008 (-$602,000).b. Time pattern and growth rate of returns: As mentioned in the previous part, a yearly time pattern has been considered. The growth rate of return is known as the Sustainable Growth Rate and is computed as follows: g = RR (Retention Ratio) * ROE (Return on Equity). As there are no dividend streams being paid by the company, RR will be equal to 100% and as ROE = 22.47% (according to Yahoo Finance, Coinstar Inc. Key Financials as of December 31, 2010), the growth rate will also come about to be 22.47%.III. Investment Decision Process: A comparison of Estimated Values and Market PricesTo consider investment decisions in a particular stock, its estimated or fair value and market price comparison should be carried out. This will tell investors whether the stock is undervalued or overvalued.

Interrogating the Museum Essay Example | Topics and Well Written Essays - 750 words

Interrogating the Museum - Essay Example It is â€Å"is fashioned after the many cabinets of curiosities housed among princely palaces that originated throughout Europe during the 1500s. Ours follows this tradition with a stimulating mixture of books, games, costumes, and other hands-on activities for the entire family (Denver Art Museum). Perhaps the extra effort that was undertaken by the curator of the museum was consistent with its mission not just to house art works but rather to â€Å"enrich the lives of present and future generations through the acquisition, presentation, and preservation of works of art† which explains why the â€Å"unusual† presentation of the art works. The Bernadette Berger Discovery Library contains a mixture of artworks, artifacts, books and other printed artistic materials that it would be difficult to classify the discovery library as a mere museum or study area because it is a combination of both and even more because it encourages the visitors toward a self-discovery of the a rea. In addition, the discovery library in Denver Art Museum is also constantly rearranged to invite its visitors for a return. The moment visitors enter the library, they would notice unusually sized furniture where books, artifacts and artworks are nicely tucked on the walls and cabinets which includes an 18th century doll house, an Egyptian mummy case and several Greek vases. What is unusual with the framing of the artworks there is that some are contained in drawers that the visitors can roll out to see them which includes Egyptian jewelry. What is interesting in the discovery library were the artworks that early Native Americans would have which includes ceramics, basketries and even photos and paintings of the old American West. They are also constantly being rearranged but in general, the place could simulate a comfortable home with oversize furniture and air conditioned. It is also one of the very few museums where there are computers that we could use. Equally interesting, and perhaps the visionary approach of its curator is that there were no staff present when I visited the place and we were just left alone. It was not to neglect us visitors but it was more of encouraging us to explore what is in the library and to encourage that, staff presence were removed. And it was effective because I became engaged with the discovery center. The Bernadette Berger Discovery Library was opened between 1997 and 1999 which was deliberately created as a â€Å"themed† library and used the term â€Å"discovery library† for it to send a message to its visitors that they are welcome not to mention to become more comfortable with the place that would induce them to stay longer. The set up of presenting the books and artworks in the Discovery Library was intended to break the pattern where visitors see a museum with a permanent set up or presentation where they would only visit once not to mention that the visit would be a bore because they remain standing that they could only spend for minimum amount of time (Williams 160). Personally, this is the most interesting part of the museum because it is inviting, relaxing and engaging unlike in other places in other museum where there are no activities that all I have to do is stare at the artwork or listen to the explanation of the curator where I have been standing all along. With this kind of set up, the guests visit