Airbus A3XX: Developing the World’s Largest Commercial Jet How will the project be financed? • $5.9 billion from internal equity • $3.5 billion from “risk-sharing partners” • $3.6 billion from “launch aid” • Total: $13.0 billion 1 Cost of capital • k = rf + β (rm – rf) • rf = .06 β = .84 (rm – rf) = .06 (page 8) (page 8) (given) • k = .06 + .84 (.06) = .1104 ≈ 11% What if the launch aid is “free?” • Cost of capital = $9.4 billion @ 11% $3.6 billion @ 0% $13.0 billion @ 8% 2
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| 2.0 | Sales Forecast | | | 3 | | | 2.1 | Sales Forecast | 3 | | | 2.2 | Methods and Assumptions | 4 | 3.0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 6 | | | 4.1 | Cash flows | 7 | | | 4.2 | NPV Analysis | 8 | | | 4.3 | Rate of Return Calculations | 8 | | | 4.4 | Payback Period Calculations | 9 | 5.0 | Pro Forma Financial Statements | | | 9 | | | 5.1 | Pro Forma Income Statement | 9 | | | 5.2 | Pro-Forma Cash flow Statement
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processing Financial Management Decisions Capital budgeting • Should you take a particular project? • What is this project worth? Capital structure • To undertake project investments‚ should you borrow money (debt) or sell a share to partners (equity) or finance it yourself (if you can)? • How can/should a manager finance projects and disperse funds? Working capital management • How do we manage the day-to-day finances of the firm? 1.2 Forms of Business Administration Three
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The Bailey Prospect[1] It is Thursday‚ May 18‚ 1988. Your assignment is to help Sprigg Lane Natural Resources evaluate the risks associated with a potential investment in the "Bailey Prospect‚" a natural gas opportunity in Doddridge County‚ West Virginia. Your colleague‚ Lisa Weatherford has done a thorough base-case analysis and constructed a spreadsheet model that you can use in your analysis. You and Lisa are financial analysts at Sprigg Lane Investment Corporation. Background Sprigg
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began to become a major issue. His lifelong mentor Mitropoulos advised him to find a partner and get married to stop these speculations. He married the Chilean actress and pianist Felicia Cohn Montealgre. Trouble in Tahiti was written in 1951 and its sequel‚ A Quiet Place. Trouble in Tahiti was a “forty-five minute two-character chamber piece about a bored‚ upper-middle-class couple.” (Biography Editors). The sequel was collaborated with choreographer Jerome Robbins. Leonard was the first American-born
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In the year 1897‚ Bram Stoker releases the crown jewel of the 20th century: his vampire epic Dracula. Ever since Dracula‚ Transylvania‚ and castles have been associative of vampirism‚ the world has become “bloody”. There are slight deviations to the novel‚ but the majority of them are fairly partial to the novel. Worldly views show Dracula as an old man with a new face. The inception of Bram Stoker’s Dracula has been the melting pot of the recreations and incarnations of the world’s deadliest‚ blood-sucking
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MGMT 837 INTERNATIONAL STARATEGY AND ORGANIZATION SERDAR SERDAROĞLU Fiat’s Strategic Alliance with Tata What is the business opportunity in India? Do you think that Fiat needs a partner? Why? Actually there is a lots of opportunities in India. There is a huge automobile industry in India which was valued at over 26.3 billion USD. Unit sales in the same year exceeded 1.5 million. Passanger vehicle sales is expect to grow 14%-16%. There is a big potential in owned car statistics. It was expected
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sales are increasing? Select one: Trend adjusted exponential smoothing Weighted moving average Naïve Exponential smoothing ? Simple mean x Which of the following forecasting methods is most likely to be implemented to change an existing quantitative forecast to account for a new competitor in the marketplace? Select one: Gamma method Executive opinion Market research Naïve method Delphi method In looking at seasonal indexes one weakness to watch for is Select one: use
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Caso Della Torre a. Why is corporate finance important to all managers? Corporate finance deal with financial decisions business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm’s financial risks. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
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Flashback to the summer of 1977‚ the United States had just celebrated its bi-centennial‚ Jimmy Carter was in the White house‚ and the king of rock and roll was in his last days. A bright eyed and bushy tailed young filmmaker named George Lucas was about to launch his newly created project on the world‚ “Star Wars”. Lucas‚ not a pedigreed filmmaker by no means‚ is given the greenlight by 20th century Fox and the budget of 11 million dollars to film his creation. The film was released on Memorial
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