WEIGHTED AVERAGE COST OF CAPITAL FOR DELL COMPUTER 1) From the SEC website‚ the balance sheet of Dell Computer reveals a Book value of debt = $3‚394‚000‚000 and Book value of equity = $4‚625‚000‚000 The same balance shows the breakdown of the long-term debt (book values) in table 1. Table 1 Coupon Rate (%) Maturity Book Value (Face Value in million $) 3.38 06/15/2012 400 4.70 04/15/2013 599 5.63 04/15/2014 500 5.65 04/15/2018 499 5.88 06/15/2019 600 7.10 04/15/2028 396 6
Premium Weighted average cost of capital Market capitalization Stock market
Meaning of Working Capital– Orking capital refers to the part of total capital which is required for day to day working of the business. The funds are required by the business for conducting its regular operations such as purchase of raw materials of finished goods‚ payment of wages & manufacturing expenses‚ office and administrative expenses‚ selling & distribution expenses. The funds necessary for making such regular payments of business is called Working Capital therefore have been defined
Premium Inventory Balance sheet Working capital
Foreign capital: The capital available to any country other than the domestic capital in order to finance any domestic purpose is called foreign capital. Need for Foreign Capital 1.Capital investment requirements – Since underdeveloped countries want to industrialize themselves within a short period of time‚ it becomes necessary to increase capital investment substantially. This requires a high level of savings. However‚ because of general poverty‚ the savings are very low. This creates a
Premium Development Investment Economic development
UVA-F-1357 EBAY INC. (A) Gary Bengier‚ Chief Financial Officer and Vice President of Operations at eBay‚ clicked on the send button as he emailed the week’s financial update to Pierre Omidyar‚ the company’s 31-year old chairman. It was September 15‚ 1998 and Wall Street was still reeling from a summer of severe market volatility. Much of the market’s instability could be traced to bearish worries over a deepening and continuing economic crisis in Asia and other developing markets. Many investors
Premium Stock market Balance sheet Initial public offering
CAPITAL FORMATION CAPITAL: Capital is defined as a physical reproducible factor of production. FOUR FACTORS OF PRODUCTION: LAND‚ LABOUR‚ CAPITAL & ORGINIZATION LAND Gets Rent==►LABOUR Gets Wages==►CAPITAL Gets Interest‚ ==►ORGANIZATION Gets Profit. CAPITAL FORMATION: is the act in which society dose not consume all of its income in day to day expenses but manages to save some of its income for farther investment (Output‚ Yield)Y = Consumption (C) + Saving (S) ==► (Investment) I Y =
Premium Investment Economics Capital accumulation
a number of techniques of capital budgeting. Some of the methods are based on the concept of incremental cash flows from the projects or potential investments. There are some other techniques of capital budgeting that are based on the accounting rules and accounting earnings. However‚ the techniques based on the accounting rules are considered to be improper by the economists. The hybrid and simplified techniques of capital budgeting are also used in practice. Capital budgeting is the process of
Premium Net present value Investment Internal rate of return
Capital Budgeting Introduction Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm’s goal of maximizing owner wealth. A firm using capital budgeting‚ their goal is to see if there fixed income will cover itself for profit. Fixed incomes are things such as land‚ plant and equipment. When a firm using a machine to produce its good or service. They most of the time what the machine to produce the amount that they paid for the machine
Premium Net present value Cash flow Internal rate of return
Capital Project “A capital expenditure is a commitment of resources that is expected to provide benefits during a reasonably long period‚ at least two or more years” (Cleverly & Cameron‚ 2007‚ p. 397). Sometimes it can be difficult to determine the difference between a capital expenditure and a routine expense. A capital expenditure improves the value of the asset‚ whereas a routine expense is used for maintenance of that asset. For example‚ installation of a new bathroom in a
Premium Patient Emergency medicine Hospital
”CAPITAL PUNISHMENT” Understandings of justice differ in every culture‚ as cultures are usually dependent upon a shared history‚ mythology‚ and religion. Each culture’s ethics create values which influence the notion of justice. Although there can be found some justice principles that are one and the same in all or most of the cultures. In this topic‚ i won’t tell you about justice in details‚ but i’ll give you an example of justice in laws‚ one of them is “Capital Punishment”. Capital Punishment
Premium Capital punishment
: argumentative or persuasive essay) Capital punishment is viewed by the law as the act of deterring a person from performing a certain crime that poses threat to the lives of human being. Through capital punishment‚ life is lost and this method in a way makes sure that a particular crime isn’t repeated by a particular person thus completely deterring the person from repeating the crime. It should be noted that though death penalty is practiced‚ in some instances it is discriminatory and it may
Premium Capital punishment Murder Prison