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Expectations Investing
book

Expectations Investing

by Alfred Rappaport, Michael J. Mauboussin, Peter L. Bernstein
February 2003
Intermediate to advanced
256 pages
6h 56m
English
Harvard Business Review Press
Content preview from Expectations Investing
cash-flow calculation. Excess cash is the cash over and above what a
company needs for current operations. Companies sometimes stockpile
cash and marketable securities to weather an industry downturn or to
prepare for a large acquisition. Nonoperating assets can represent a sig-
nificant percentage of a company’s stock price. For example, in Novem-
ber 2000, cash and marketable securities accounted for between 30 and
56 percent of the stock price of AMR, Apple Computer, Bausch &
Lomb, Delta Air Lines, Ford, and General Motors.
11
A company’s cash
requirements for its daily operations vary from industry to industry—
from 1 percent of sales for stable businesses ...
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Publisher Resources

ISBN: 9781633691520