Any company’s assets are either financed by its debt or by its equity. The Weighted Average Cost of Capital is the average costs of these sources of financing‚ each of which is weighted by its respective use in the given situation. By taking the weighted average‚ we can see how much interest the company has to pay for every dollar it finances. Basically‚ the WACC is the minimum required return that the company must earn to satisfy its creditors‚ owners‚ and other providers of capital‚ or they will
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THE BOEING 7E7 Teaching Note Synopsis and Objectives In 2003‚ the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing‚ similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe‚ as well as the fact that it would penetrate a rapidly growing market segment‚ were arguments for approval of the project. On the other hand‚ the
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of the Arithmetic Mean easy to compute easy to understand valuable in statistical tool strongly influence by extreme values‚ this is particularly true when the number of cases is small cannot be compute when distribution contains open-ended intervals Uses of Mean for interval and ratio measurement when greatest sampling stability is desired when the distribution is symmetrical about the center when we want to know the “center of gravity” of a sample The Arithmetic Mean (X)
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Progressions Test – 1 1. A boy agrees to work at the rate of one rupee on the first day‚ two rupees on the second day‚ four rupees on the third day and so on. How much will the boy get if he starts working on the 1 st of February and finishes on the 1st of February and finishes on the 20th of February? (a) 220 (b) 220 - 1 (c) 219 - 1 (d) 219 2. If the fifth term of GP is 81 and first term is 16‚ what will be the 4 th term of GP? (a) 36 (b) 18 (c) 54 (d) 24 3. The sum of the first and the third
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Introduction and background We are conducting an analysis of Marriott Corporation for calculating the hurdle rates at each of the firm ’s three divisions--lodging division‚ restaurant division and contract service division. Marriott uses Weighted Average Cost of Capital (WACC) as the hurdle rate‚ and use it to discount the appropriate cash flows when evaluate an investment project. Our goal is to determine the WACC at every division base on the information that the case has provided. First
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the numerators are the same in one row. Each numerator after 1 is the sum of 1+2+…+n (n=row number) which forms an arithmetic series. For example: When n=3‚ the numerator will be t3=1+2+3=6. Table 1: Row Number and Numerator Row Number Numerator Investigation 1 1 t1=1 2 3 t2=1+2 3 6 t3=1+2+3 4 10 t4=1+2+3+4 5 15 t5=1+2+3+4+5 Therefore‚ according to this arithmetic series tn=1+2+3+…+n‚ (n=row number)‚ we can find out the numerator of the sixth row is t6=1+2+3+4+5+6=21 Part 2:
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used for both graphs‚ they would look as follows: Example 2: ABC.com presented that the average blood sugar level before meals for Americans is 142 mg/dL but did not specify how the average was calculated. What they did not share was that the mean‚ or arithmetic average‚ was calculated from a sample size of only four people. Of these four people‚ all of the blood sugar levels (before meals) were in normal ranges and one person had a blood sugar level of 240 mg/dL‚ causing the entire group’s average to be skewed
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Josiah‚ my father‚ married young‚ and carried his wife with three children into New England about 1682. The conventicles having been forbidden by Law‚ and frequently disturbed‚ induced some considerable men of his acquaintance to remove to that country‚ and he was prevailed with to accompany them thither‚ where they expected to enjoy their mode of religion with freedom. By the same wife he had four children more born there‚ and by a second wife ten more‚ in all seventeen; of which I remember thirteen
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value. What is the average percentage depreciation‚ reckoned on the diminishing value for the five years? 3. The mean age of a group of 100 persons was found to be 32.02.Later‚ it was discovered that age 57 was misread as 27. Find the corrected arithmetic mean. 4. Out of the total population of certain town in South Africa 60% belonged to the Black Race and the rest belonged to the white race. It was estimated that their mean incomes were 2000 and 5000 pounds respectively. Find the average income
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Introduction: Investment is the way by which individuals try to increase their money or wealth through delaying their consumption of goods and services for later time in future through purchasing financial instruments or other assets that will in returns provide them with return in form of : interest‚ dividends or capital gains. Through investment investor required a return that compensates him for the time the money is committed‚ the inflation rate and the uncertainty of future payments. According
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