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Estimated the index model for et incorporated

Using historical daily returns, you estimated the following Index model for ET incorporated: rET = .01% + 1.75 r S&P500

On February 15, 2007, ET announced its intention to buy back 1,000,000 of its 5,000,000 outstanding shares in the open market. ET stock price closed 3% higher than the close on February 14. How much of the 3% increase can be attributed to the buy back announcement if the S7P500 was up by 1% on February 15?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Estimated the index model for et incorporated

Reference No:- TGS01451632

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Estimated the index model for et incorporated

Reference No:- TGS01451632

Recent Questions Asked Finance Basics

Q : Create an excel spreadsheet detailing the cost

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Q : Firms cost of capital can ever create value

Q : Calculate the firms levels of earnings

Q : Estimated the index model for et incorporated

Q : What is the breakpoint on the mcc

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