Essay on Week 3 You Decide

1686 Words Feb 19th, 2014 7 Pages
MasterCard Inc. Stock Evaluation
Carlos Davila
Devry University

MasterCard Inc. has enjoyed a healthy introduction and life in the New York Stock Exchange since its initial public offering in 2006. This survey examines the likelihood of future success, as well as the healthy measurements in equity returns, CAPM measurements and stock prices. MasterCard stockholders have continually been encouraged to purchase stocks with great incentives like stock splits, and increasing dividends. By comparison to competition from Visa, American Express and Discover, MasterCard has remained a top contender with annual revenues in the tens of billions of dollars, and is projected to exceed all credit processing firms in 2014.

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(Dolen, 2008)
MasterCard opened its initial public offering in 2006 on the New York Stock Exchange for 34.00 and today has excelled over 750.00 continuing prosperity and growth as they have entered the global competition in the market. An impressive growth pattern has prompted MasterCard to find the 2nd spot next to Visa Incorporated and trampling other small competitors in the market. (The Motley Fool, 20313)
As a payment processing company, MasterCard, Inc. bills the banks, credit unions and firms taking payment from customers for the service of processing credit and debit transactions. The common misconception of credit cards is that the company responsible for processing the payment carries the debt until paid; contrary, the banks and credit unions carry their customer’s debts until satisfied and MasterCard and others charge for the processing of transactions, continuously profiting bye each processed transaction. The Company process transactions in more than 150 currencies in more than 210 countries and territories. The MasterCard Worldwide Network provides its customers with a structure that enables them to support processing across regions and for domestic markets. (Dolen, 2008)
Life Cycle Analysis
MasterCard has carried a formidable and impressive stock option since opening in 2006 on the NYSE by growing their stock values well over twenty-three times the original values of their shares.

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