CAPDM Tutorial Applets

Shareholder Wealth

Functionality:

Every investment decision affects the wealth of those who own the company. This is because the value of an asset is determined by expected future income streams, and investments are undertaken now to generate income in the future. When you buy a share in a company you buy an asset, and the value of that asset depends on the market view of the expected income stream likely to be generated by the company in the future. When the company undertakes an investment it changes the expected future income stream and hence changes its own value as an asset. Consequently, the value of shares in the company will also change.

The 'Equity Funded' tab in the applet allows you to investigate the impact of different investments and retention rates, (i.e. the extent to which investments are funded out of retained earnings as opposed to new equity) on shareholder wealth.

The 'Company Value' tab in the applet allows you to investigate different investments and retention rates, compare the situation where dividends are paid or not paid, and investigate the effect on share prices and company value.

In the final 'Borrowing' tab you can investigate different investments and the effect on Shareholder Wealth of different retention rates and borrowings. The impact on company value and Shareholder Wealth of growth rates in cash flows can also be investigated.

Remote Control using JavaScript

Version information for this applet can be displayed.

Examples

Show 'About' dialog

How to Invoke the Applet

The applet can be invoked by embedding an APPLET tag into your HTML document (if you look at the source of this document you will see a working example you can copy). The table below details the basic parameters used and additional startup parameters that are specific to this applet.

<APPLET 
  CODEBASE="../../../../classes"
  ALT="Wealth"
  CODE="applet.capdm.finance.wealth.WealthApp" 
  NAME="YieldCurve"
  WIDTH="570"
  HEIGHT="450">
  t;/APPLET>

Basic Parameters	Use
CODEBASE="../../../../classes"	The CODEBASE of the applet must point at the top-level classes directory in order for the applet to be found.
CODE="applet.capdm.finance. wealth.WealthApp"	This required attribute gives the name of the file that contains the applet's compiled Applet subclass. This file is relative to the base URI of the applet.
ALT="Wealth"	This optional attribute specifies any text that should be displayed if the browser understands the APPLET tag but can't run Java applets.
NAME="Wealth"	This optional attribute specifies a name for the applet instance, which makes it possible for applets on the same page to find (and communicate with) each other. If you intend to use JavaScript/Applet scripting then the applet must be named a shown.
WIDTH="570" HEIGHT="450"	These required attributes give the initial width and height (in pixels) of the applet display area, not counting any windows or dialogs that the applet brings up.

For more information on the use of the APPLET tag and other attributes you can use but which are not listed above, visit the W3.org specification page at: APPLET tag in HTML 4.

Runtime Applet API Calls

There are no Runtime API calls available for this applet.