CHAPTER 10: COST OF CAPITAL HOMEWORK 1. The Dempere Imports Company’s EPS in 2009 was $2.82‚ and in 2004 it was $1.65. The company’s payout ratio is 30%‚ and the stock is currently valued at $41.50. Flotation costs for new equity will be 15%. Net income in 2010 is expected to be $15 million. The market-value weights of the firm’s debt and equity are 40% and 60%‚ respectively. a. Based on the five-year track record‚ what is Dempere’s EPS growth rate? What will the dividend be in 2010?
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CASE 10 : LINCOLN ELECTRIC PRINCIPLE OF MANAGEMENT LECTURER : SUBMISSION DATE : NAME Background of the case Question 1 Does Lincoln follow a hierarchical or decentralized approach to management? Explain your answer and give examples. Answer: Lincoln follows a decentralized approach to management. The company han an open-door policy for all top executives‚ middle managers‚ and production workers‚ and regular face-to-face communication
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consuming nothing but cabbage soup for a whole week. It doesn’t require any long term commitment and is designed for short term weight loss. This diet typically declares that this diet is made to lose 4.5 kg of weight in seven days although professionals state that is it almost impossible to lose that much in a week. Although the origins of this diet are unknown‚ its influx in popularity was due to an urban legend in the 1980s. This diet is covered under many names‚ such as “sacred heart diet”‚
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LITERATURE REVIEW OF INVESTMENT APPRAISAL METHODS What is meant by investment appraisal practices? The investment appraisal process includes the generation of ideas‚ assessment and authorization‚ implementation and control of the project (Dennis R. Young‚ 2007). Decision-making is increasingly more complex today because of uncertainty. Additionally‚ most capital projects involve numerous variables and possible outcomes. For instance‚ estimating cash flows associated with a project involves working
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INVESTMENT APPRAISAL Exercise1: Project K has a cost of $52‚125‚ its expected net cash inflows are $12‚000 per year for 8 years‚ and its cost of capital is 12%. a. What is the project’s PP (time thu hồi dc vốn)? b. What is the project’s DPP? c. What is the project’s NPV? d. What is the project’s IRR? a) PP = 52‚125/12‚000 = 4.34 b) 52‚125 – 12‚000/1.12 – 12‚000/1.12^2 – 12‚000/1.12^3 – 12‚000/1.12^4 – 12‚000/1.12^5 – 12‚000/1.12^6 = 2788 PV (7) = 12000/1.12^7 = 5428 DPP = 6 + 2788/5428
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Breaking news: Ron Burgendy/ Me: Hello‚ this is Ron Burgendy from AF at ten here with exclusive coverage of Animal Farm. Napoleon’s dogs have just run Snowball out of Animal Farm! Here’s some footage of this event. (Dog chasing Snowball. Snowball goes out of footage.) Snowball: HELP MEEEEEEE!!!!!! Me: I cannot believe that Napoleon has just done this to Snowball. It is truly astonishing. Me: Later I found Snowball and interviewed him. His location is not being revealed for the sake of his safety
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our investments class first started I knew very little about stocks‚ mutual funds and options but with every class that I took I started to understand exactly what each meant. This became very important in my research of companies to choose for stocks‚ mutual funds and options. I took a few things into consideration: the economy‚ the time of season‚ and the products the company is best known for; also from the companies chosen I look at their three month six month and one year overlook. This gave
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30‚ 2010 Animal Farm and the Russian Revolution Animal Farm is an allegory for what happened in Russia between the years of about 1917 and 1943. Orwell uses characters and certain details to symbolize different situations in the Russian Revolution. Understanding the specific historical context underlying Animal Farm enriches one’s reading of the book. The novel is about failed revolutions everywhere‚ but above all‚ it is about the Russian Revolution. Orwell uses Animal Farm to show how events
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Impact of Foreign Direct Investment and Trade on Economic Growth Shiva S. Makki The World Bank Agapi Somwaru Economic Research Service‚ USDA Contact Author: Shiva S. Makki Room MC 2-509‚ DECRS 1818 H Street‚ N.W. Washington‚ DC 20433 Phone: 202 458-8521; Fax: 202 522-0087 Email: smakk@worldbank.org ABSTRACT Foreign direct investment (FDI) and trade are often seen as important catalysts for economic growth in the developing countries. FDI is an important vehicle of technology transfer from
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Socialist State and the corrupting influence power. Discuss this statement‚ detailing the ways in which Orwell uses language to create political satire. ‘Animal Farm’‚ written by George Orwell is an allegorical fable in which animals are personified to epitomise the conflicts and struggles of the Russian Revolution in 1917. Written as ‘A Fairy Tale’ on the book‚ the moral Orwell is attempting to illustrate is universalised‚ with the inclusion of farm animals‚ to appeal to a larger audience. Through the
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