bonds in 2007. Rd=0.0498+0.0162=0.066 3. Cost of equity‚ the EMRP (5%) and D/E (59.3%) was taken out of the context of the case. βa=Equity Beta/(1+D/E)= 1.25/(1+0.593)= 0.78 According to Table1‚ consolidated D/V is 42.2%‚ E/V is 57.8%‚ βe= βa*(1+D/E)= 0.78*(1+0.422/0.578)=1.35 Re=Rf+ βe *EMRP= 0.0498+(1.35*0.05)= 0.1173 4. WACC‚ the tax rate (38.58%) was from the 2006 taxes paid. WACC= D/V*(1-T)*Rd+E/V*Re= 0.422*(1-0.3858)*0.066+0.578*0.1173=8.49% The division costs of capital Exploration
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APPLE CASE STUDY STRATEGIC MANAGEMENT GENERAL INFORMATION • Apple Inc.‚ is a multinational consumer electronics and computer software corporation. • Headquartered in California. • Formerly known as Apple Computer Inc. • Fortune magazine named Apple the most admired company in the United States in 2008 and 2009. APPLE STRATEGY • The transformations that occurred during the years from inception to present day have included many strategic management variations that drove the equipment and software
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energy company that went bankrupt leaving debts amounting to nearly U.S. $ 31.2 billion. In instance with the case of Enron known occurrence of moral threat behavior such as manipulation of financial statements with a record 600 million dollar profit when the company suffered a loss. Manipulation of profits caused by the desire companies to keep stock investor demand‚ these such embarrassing cases involving people apparently involved in the White House‚ including the vice president of the United States
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ensuring mechanical integrity and a safe startup between 1999 until the explosion in 2005 that killed 15 employees and injured another 170 people. The explosion was the result of a leak of hydrocarbon liquid‚ and vapor. Another leak that happened in 2006 occurred after BP failed to respond to numerous red flags. One of these flags consisted of a dangerous corrosion in its pipes that had gone unchecked for more than a decade. * To narrow this entire question up‚ BP took shortcuts in their productions
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One of the problems that I noticed that KPMG faced is the lack of sufficient space for all employees in the company. Where KPMG is located on the fourth and fifth floor of HSBC Bank‚ only two floors for more than 100 employees are considered inadequate‚ and that is what we were experiencing as trainees and we noticed that some staff was suffering from this. There are no offices dedicated to each employee and there is no privacy at work‚ and I think privacy is required because staff spend long hours
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References: 1. http://annual-report2012.bmwgroup.com/bmwgroup/annual/2012/gb/English/pdf/report2012.pdf 2. http://www.bmw.com/ 3. http://www.intel.com/content/www/us/en/cloud-computing/cloud-computing-odca-cloud-strategy-bmw-case-study.html
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Coach Case According to the company’s mission statement provided on the website‚ “Coach seeks to be the leading brand of quality lifestyle accessories offering classic‚ modern American styling.” Coach‚ Inc. matches competitors such as Dolce & Gabbana‚ Gucci‚ and Louis Vuitton on quality and styling of products‚ while beating them on price by over 50 percent. It created the “accessible” luxury category in ladies’ handbags and leather accessories appealing to middle-income as well as affluent consumers
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Amaranth Advisors: Burning Six Billion In Thirty Days Introduction: In September‚ 2006‚ a large-sized hedge fund named Amaranth Advisors LLC lost $4.942 billion in natural gas futures trading and was forced to close their hedge fund. Although Amaranth Advisors was not exclusively an energy trading fund‚ the energy portion of their portfolio had slowly grown to represent 80% of the performance attribution of the fund. Their collapse was not entirely unforeseeable or unavoidable. Amaranth had amassed
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ANALYSIS OF USEC Inc.‚ Prepared For: Dr. Doina Chichernea BUAD 6200 SPRING 2011 The University of Toledo APRIL 21‚ 2011 Executive Summary USEC is the world’s leading supplier of enriched Uranium to nuclear power plants. Due to the expiration of long term energy cost savings contracts‚ USEC is examining the possibility of taking on a new project called the American Centrifuge Project. This project will utilize a different process for Uranium enrichment‚ which is the core business process
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greatest amount of accounting information and it can serve as basic for financial and management accounting. Example of operating information: employees’ payroll‚ sales‚ outstanding balance from customers‚ inventory and so on. In the Kim Fuller’s case study‚ operating information that needed to be recorded is: i. Employee’s payroll (2 grinding workers and 1 driver)‚ ii. Invoice and delivery order to customer or former employer‚ chemical firms. iii. Operating expenses (Electricity‚ petrol
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