CHAPTER 9 PROBLEMS 2. Anle Corporation has a current price of $20‚ is expected to pay a dividend of $1 in one year‚ and its expected price right after paying that dividend is $22. a. What is Anle’s expected dividend yield? Dividend Yield = Div1 / P0 = =1/20 = 5.0% b. What is Anle’s expected capital gain rate? Capital Gain = (P1 ‐ P0) / P0 = (22 ‐ 20 ) / 20 = 10.0% c. What is Anle’s equity cost of capital? Equity Cost of Capital = Div1/P0 + (P1 ‐ P0) / P0 = 15.0% 7. Dorpac Corporation has a dividend yield of 1
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BACKGROUND Global Financial Corporation (GF) offers financing services for customers purchasing heavy construction equipment from its parent company Global Equipment Company (GEC). GF’s Bakersfield‚ California office is setup to process the loan applications for the western United States. A recently appointed Vice President of GF‚ Nancy Rodriquez‚ is also in charge of managing the Bakersfield office. She has received a memo from the Director of Marketing at GEC with a complaint stating that the
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Internet Mini Case #10 Intel Corporation J. David Hunger In 1968‚ Robert N. Noyce‚ the co-inventor of the integrated circuit‚ and Gordon E. Moore left Fairchild Semiconductor International to form a new company. They took with them a young chemical engineer‚ Andrew Grove‚ and called the new firm Intel‚ short for integrated electronics. The company successfully made money by manufacturing computer memory modules. The company produced the first microprocessor (also called a “chip”) in 1971.
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KENNECOTT COPPER CORPORATION CASE REPORT 1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition? Prior to the consideration of Carborundum as an acquisition target‚ Kennecott‚ a copper company‚ pursued an acquisition of Peabody‚ a coal company‚ for $285 million in cash in 1968. There are two main rationales behind the acquisition of
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In Anthony S. Barkow and Rachel E. Barkow‚ eds.: Prosecutors in the Boardroom: Using Criminal Law to Regulate Corporate Conduct Hasnas‚ John. (2010). Where is Felix Cohen When We Need Him: Transcendental Nonsense and the Moral Responsibility of Corporations Husak‚ Douglas. (2000). Retribution in Criminal Theory. 37 San Diego Law Review 959. Husak‚ Douglas. (2004). Crimes Outside the Core. 39 Tulsa Law Review 755. Husak‚ Douglas. (2008). Overcriminalization. Oxford: Oxford University Press. Husak‚
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Bharati (Broadcasting Corporation of India) is the public service broadcaster in the country‚ with Akashwani (All India Radio) and Doordarshan as its two constituents. It came into existence on 23rd November 1997‚ with a mandate to organize and conduct public broadcasting services to inform‚ educate and entertain the public and to ensure a balanced development of broadcasting on radio and television. Objectives The major objectives of the Prasar Bharati Corporation as laid out in the Prasar
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Case Questions: 1. Option #3 suggests Stryker Corporation to build its own facility to manufacture its own PBCs. Under the current situation that some contract manufacturers have weak performance in quality and delivery‚ the benefits of this option are obvious as following: First of all‚ option #3 promised the highest degree of control over quality and delivery‚ which can solve the major problem that Stryker has faced with recently. On the other hand‚ self-manufacturing offers an opportunity
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The limited menu allowed them to concentrate on quality and customer service. Kroc had the idea to take the Speedee Service concept and open restaurants nationwide. In 1955‚ partnering with the McDonald Brothers‚ Kroc founded the McDonald’s Corporation and opened the first franchise in Des Plaines‚ Illinois. In 1961 he bought the exclusive rights to the McDonald’s name for 2.7 million dollars. (http://www.mcspotlight.org) Hamburger University‚ the McDonald’s training center in Elk Grove‚
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CORPORATE SOCIAL RESPONSIBILITY AND THE SOCIETY By: saheli chakraborty Introduction Corporate social responsibility (CSR)‚ also known as sustainable responsible business (SRB)‚ or corporate social performance‚ is a form of corporate self-regulation integrated into a business model. Ideally‚ CSR policy would function as a built-in‚ self-regulating mechanism whereby business would monitor and ensure their adherence to law‚ ethical standards‚ and internati onal norms. Business would embrace
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Electronics Corporation About company -Since its founding in 1950 by Thomas Merton‚ Merton Electronics had been a distributor for GEC‚ a large manufacturer of electrical and electronics products for consumer and institutional market. -Over the years‚ in addition to the GEC products‚ the company had added noncompeting lines of electrical appliances‚ records‚ compact discs‚ and cassettes. -Four years later‚ it entered into an exclusive import agreement with the Goldstone Corporation of Taiwan‚
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