FIN3101 Corporate Finance Practice Questions Topic: Capital Budgeting 1. Marsh Motors has to choose one of two new machines. Machine 1 costs $180‚000‚ has a 3 year life and EBIT of $108‚750 per year. Machine 2 costs $360‚000‚ has a life of 6 years and EBIT of $122‚875 per year. Assume straight line depreciation over the life of the machine. Marsh is a levered firm with a debt equity ratio of 0.40. The beta of equity is 1.125 while the beta of debt is 0.25. The market risk premium is 8 percent
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Indian Capital Markets Since 2003‚ Indian capital markets have been receiving global attention‚ especially from sound investors‚ due to the improving macroeconomic fundamentals. The presence of a great pool of skilled labour and the rapid integration with the world economy increased India’s global competitiveness. No wonder‚ the global ratings agencies Moody’s and Fitch have awarded India with investment grade ratings‚ indicating comparatively lower sovereign risks. The Securities and Exchange
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Business Structures Ruth Whitehead FIN/571 February 23‚ 2015 Oscar Lewis Business Structures Three types of business structures exist; Partnership‚ Sole Proprietorship‚ and Corporation. Essential deliberations are dimensions of the commercial‚ the method in which revenue from the trade is a tax‚ the lawful obligation of the proprietors‚ and the capability to obtain monies to fund the business. Few businesses start-up as a large capacity organization. All business structures have advantages and
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1 Against the Death Penalty By Ivonne Perez October 10‚ 2014 Sociology 1 Capital Punishment is an issue that is constantly debated. I do not support Capital Punishment for many reasons. The death penalty is not a necessity‚ if it’s so wrong for people to kill one another‚ why should the government be able to have somebody on the death penalty. For the worst crimes‚ life without parole is better‚ for many reasons. I’m against the death penalty not because of sympathy for criminals but
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University of Phoenix FIN 571 Aljenette Brown Professor Elliott November 9‚ 2014 Business Structure A business is the fruit of a seed that a sole person or a group of people bears. The decision of what type of business to open will greatly affect the company in the long run. Many options exist for the person(s) such as opening a sole proprietorship‚ corporation‚ Limited Liability Corporations‚ partnerships‚ etc. Limited Liability Corporations and partnerships are very similar company types
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Life is Worthy The great Martin Luther King once said “ capital punishment is society’s final assertion that it will not forgive”. Although some crimes are indeed so heinous that society feels no way of dealing with them ‚ the death penalty is not the answer. Not only does capital punishment promote barbaric actions by a justice system deemed civilized ‚ it is an insult to justice. The Death Penalty is a miscarriage and a travesty of justice by using excessive measures on crimes committed by fellow
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Motorola Inc. Questions: 1. What are the key success factors for Motorola’s ASIC division? * The opening of a new production facility in Chandler was an opportunity for them to make changes within the division. * New plant floor layout that was designed for a JIT philosophy. * Products were able to move from cell to cell instead across large distances on the production floor. * The fast turnaround time for new IC’s which allowed items to be shipped within 3 weeks from the time
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Capital Budgeting Rules: NPV‚ IRR‚ Payback‚ Discounted Payback‚ AAR Categories of Plans 1. Replacement Projects: decisions to replace old equipment – those are among the easier of capital budgeting techniques. It is important to decide whether to replace the equipment when it wears out or to invest in repairing the machine. 2. Expansion Projects: These are decisions whether to increase the size of business or not – they are more uncertain than replacement projects. 3. New products and services: These
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any stress on the company. You have successfully made a brand of the product setting price beginning at $100. This allows you to achieve margins of 50-60%. This company has continued to be profitable with high margins and no debt. Strategy Dansko‚ Inc. trains employees by what they call a “Home Schooling” approach. You have typically hired younger motivated people with little to no business experience‚ let alone footwear industry experience. Time is taken to mentor and train the employees and give
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Vision of the Company | 12 | 3. | SWOT a. Theory of SWOT b. Importance of SWOT c. SWOT of the company | 141617 | 4. | Business Strategy | 21 | 5. | Conclusion | 30 | | Bibliography | | PROFILE OF THE COMPANY Apple Inc.‚ formerly Apple Computer‚ Inc.‚ is an American multinational corporation. It is headquartered in Cupertino‚ California that designs‚ develops‚ and sells consumer electronics‚ computer software and personal computers. Its best-known hardware products are the Mac line
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