Telecommunications Service WACC = 27.1% * 3.44% +72.9% * 10.34% = 8.47% Rf = 4.62% (Exhibit 1) Average Beta = 1.04 (Exhibit 3) Weight of debt = 27.1% (Exhibit 3) Re = Cost of Equity = 4.62% + 1.04 * 5.5% = 10.34% After-tax cost of debt = 3.44% (Exhibit 1) Products & Systems WACC = 9.20% *4.48% + 90.80% * 12.10% = 11.4% Rf = 4.62% (Exhibit 1) Rm = 10.12% (Exhibit 1) Average Beta = (1.39 + 1.33)/2 = 1.36 Weight of debt = (13.1% + 5.3%)/2 = 9.20% Re = Cost of Equity = 4.62% + 1.36 *
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Case 1 Managers are most likely to step across ethical and legal boundaries when the pressure to perform is great. Pressure can be healthy but companies that set high-performance targets and grant large rewards for achieving these must have strong control systems to ensure that people are not tempted to cross boundaries. What are the four important control systems? Please identify each control by name. Strategy WorldCom never really had a strategic plan‚ committee‚ or framework. Their plan
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Case: Microsoft in China Q1: What are the risks that Microsoft has faced in operating in China and dealing with the Chinese government? Do you see these risks as increasing‚ diminishing‚ or changing in the future?Are these risks unique to China or present in other developing countries? There are two major risks that Microsoft has faced in operating in China. Firstly‚ after China joined WTO. Although Chinese government taks some actions for its IPR‚ especailly for foreign compnies‚ the rate
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2014 STUDENT C ASE C OMPETITION The Student Case Competition is sponsored annually by IMA® to provide an opportunity for students to interpret‚ analyze‚ evaluate‚ synthesize‚ and communicate a solution to a management accounting problem. Starfire’s Dilemma Capacity at What Cost? By Thomas L. Albright‚ CPA; Paul E. Juras‚ CMA‚ CPA; and Russ Elrod F ounded in 1968 by Alan James‚ Starfire Trucking Company has grown into a sizeable operation with 90 trucks and 180 trailers. Recently
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Question One: Hypertension (in addition to a number of medical conditions) may be considered as primary or secondary. Explain these concepts giving three examples of secondary hypertension and their pathophysiology. Most of the conditions that cause secondary hypertension involve the overproduction of one of the body’s hormones. Some of the medical problems that can cause secondary hypertension include: Kidney disease. Secondary hypertension is related to damaged kidneys or to an abnormal
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NIKE‚ INC.: COST OF CAPITAL On July 5‚ 2001‚ Kimi Ford‚ a portfolio manager at NorthPoint Group‚ a mutual-fund management firm‚ pored over analysts ’ write-ups of Nike‚ Inc.‚ the athletic-shoe manufacturer. Nike ’s share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed‚ the NorthPoint Large-Cap Fund‚ which invested mostly in Fortune 500 companies‚ with an emphasis on value investing. Its top holdings
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Business Harvesting Case Facts Protagonist : Mr. Rakesh Mathur and Mr Viswanathan Iyengar The Occasion: Monthly Lecture Meeting‚ Mumbai Management Association (MMA) Date: 1st Nov‚ 2010 Time : 6pm President : Rakesh Mathur‚ the guest speaker of the month; Viswanathan Iyengar‚ president MMA; Office- bearers and members of the MMA Agenda : Entrepreneurship‚; Objectives of Developing a Business Harvesting Iyengar introducing Rakesh Mathur and tell that Mr. Mathur is going to speak on business
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Foster v. Cross Supreme Court of Alaska 1982 Facts In the fall of 1977‚ Michael Stephens‚ sole proprietor of Stephens Construction‚ asked Warren Sanders‚ a local real estate broker‚ to find a large piece of land that would be suitable for development into a single family residential project. Sanders located several parcels and found a homestead staked and owned by Robert and Arlene Cross. Sanders contacted and met with Robert Cross in February of 1978 and stated that he was looking for land
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problemas en un caso real que parecen no estar conectados entre sí‚ sin embargo el participante tiene que encontrar por una parte cuáles son las preguntas y presentar sus propuestas de solución en base a los conocimientos adquiridos en el curso. CASE The Valley Winery* Pat Waller‚ recently hired as sales manager of the San Francisco region’s chain division‚ was lamenting the problems he inherited. Despite favorable sales results for the San Francisco region‚ turnover was so severe Waller could
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Arthritis characterized by erosion of articular cartilage‚ either primary or secondary to trauma or other conditions‚ which becomes soft‚ frayed‚ and thinned with eburnation of subchondral bone and outgrowths of marginal osteophytes; pain and loss of function result; mainly affects weight-bearing joints‚ is more common in older persons. Syn: degenerative arthritis‚ degenerative joint disease‚ hypertrophic arthritis‚ osteoarthrosis. DEFINITION 3. Osteoarthritis‚ sometimes called degenerative joint
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