CAPITAL BUDGETING Cost of Capital Evaluating Cash Flows Payback‚ discounted payback NPV IRR‚ MIRR The Cost of Capital • Cost of Capital Components – Debt – Common Equity • WACC Should we focus on historical (embedded) costs or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital. So‚ we should focus on marginal costs. What types of long-term capital do organizations use? nLong-term debt nEquity Weighted
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as the discount rate in net present value (NPV) project appraisal techniques.1 The weighted-average cost of capital (WACC) represents the overall cost of capital for a company‚ including the costs of equity and cost of debt‚ weighted according to the proportion of each source of finance within the business. In easy words WACC measures a company’s cost to borrow money. The WACC equation is the cost of each capital component multiplied by its proportional weight and then summing: Where: Re
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Executive Summary This reports aims to establish the current issues that BreadTalk Group Limited is facing and how the issues will have an impact on their earnings and share valuations. In our report‚ a computation of DuPont ROE Analysis between BreadTalk‚ Food Junction and Auric Pacific was examined and it was noticed that BreadTalk’s ROE is predominantly higher than Food Junction and Auric Pacific over the years of our forecast from FY2012 to FY2015. Based on the calculations‚ several assumptions
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Question 1: What is Corporate Social Responsibility and how could this influence the organisational behaviour of ‘Breadtalk’? Corporate Social Responsibility (CSR) is where corporations or organisations are obliged to inter-relate their businesses with behaving in ethical and moral ways. It is where such corporations have notions towards having responsibility to the society that upholds them. Examples of ethical and moral ways varies from giving back to needy groups in terms of monetary funding
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that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company‚ but instead promote positive social and environmental change. Mr Koh Juan Kiat explained that adopting CSR brings intangible benefits such as a good reputation for the company‚ high morale among employees and improved performance
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Master of Business Administration Module Title: Financial report The service dominant logic concept has emerged from the literature of strategic marketing‚ B2B marketing‚ relationship marketing and service marketing. Evaluate its usefulness to marketing practice. Student ID: 1228694 Submission date: 2nd June 2012 Word Count: 2403 words Table of Contents |Description
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George Quek‚ first conceptualized "BreadTalk" in April 2000 when he saw an opportunity for starting a bakery selling freshly baked breads and buns which are visually creative and attractive. Our signature ’Flosss’ bun sells at a rate of 1 every 10s worldwide. 100 million ’Flosss’ buns have since been sold. 2000 1st BreadTalk outlet opens at Bugis Junction‚ Singapore Launches its signature Flosss bun - spiralling long queues George Quek targets to open 10 BreadTalk outlets in 3 years 2001 Receives
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Introduction Breadtalk Private Limited marks its virgin birth at Parco Bugis Junction (retail outlet) on 1st July 2000. With a remakable period of five months‚ on December 2000‚ it ventures into its second venue at Novena Square and further enterprise onto its third outlets closer to the HDB heartlands‚ Juntion 8 shopping centre. Breadtalk has established a firm foundation in local market with just three years‚ it is a listed company on March 2003. It has adopted 4 type generation concept
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Topic: What is Corporate Social Responsibility and how could this influence the organisational behaviour of “Breadtalk”? Why is an understanding of cultural differences important to the Business Managers at “Breadtalk”? What are some steps that managers can take to develop greater cross cultural awareness? 1. Corporate Social Responsibility Corporate Social Responsibility (CSR) by a company is seen through the public as a way of providing to the society through goodwill and donations.
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justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain. (10% weighting) Answer The hurdle rate is the rate of return a firm has to offer finance providers to induce them to buy and hold financial security. (Arnold‚2007). This is also known as cost of capital or weighted average cost of capital. The returns offered by alternative securities with the same risk influences the hurdle rate. Larry Stone would need to estimate the firm’s hurdle
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