Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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Ajmain Mahbub Professor Hall Philosophy 101 8/4/2014 Saving Water Water is a natural resource that many take for granted; yet it is one we are quick to mourn when it is not present when we need it‚ such as for drinking‚ or when a disaster occurs that thrusts its vulnerability to the forefront of our daily news. Twenty years from now‚ will you have abundant‚ clean water? Unfortunately‚ the answer may be no‚ unless you want to buy water at $3 per gallon. People are already starting to conserve water
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tuitions Discounted in 2031 : Nominal savings interest is 7.5 % (our best alternative) Tuition in 2032= 76527.05/(1.075)= $71187.95 Tuition in 2033= 79511.6/(1.075)^2=$68803.98 Tuition in 2034=82612.55/(1.075)^3=$66499.85 Tuition in 2035=85834.44/(1.075)^4=$64272.88 Total Money needed in savings account in 2031 =$270764.66 Now ‚ using my HP 12 C : N=18 i=7.5% PV=0 FV=$270764.66 PMT = ?? PMT = $7589.25 (Answer) B. (10 points) In the first part of this problem‚ you calculated the constant
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Cost/Benefit Analysis Evaluating Quantitatively Whether to Follow a Course of Action You may have been intensely creative in generating solutions to a problem‚ and rigorous in your selection of the best one available. However‚ this solution may still not be worth implementing‚ as you may invest a lot of time and money in solving a problem that is not worthy of this effort. Cost Benefit Analysis or CBA is a relatively* simple and widely used technique for deciding whether to make a change. As its
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Case 5.3 The North Face‚ Inc 1 Auditors should not insist that their clients accept all proposed audit adjustments even those that have an “immaterial” effect on the given set of financial statements. Because “immaterial” effect on the financial statements will not affect the users’ decisions. Therefore‚ auditors have to confirm if the effects on the financial statements are really “immaterial”. If there are really “immaterial”‚ sometimes the auditor would be forced by the clients to ignore it
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Motorola Inc. Facts: Motorola was founded in 1928 and was well known for its radios and other electrical andelectronic products. They were one of a few American companies that marketed a wide range of electronic products. They created a new division called Application Specific Integrated Circuit(ASIC)‚ which was a new and dynamic market with unique requirements. This was changing the way Motorola delivered its products to its customers. This caused them to look at designing an effective management
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Case Shoose for MOOs‚ Inc. 1 QUESTION The market which Jim is going to penetrate is two countries in North America Canada and USA. Jim has an advantage because he located in Ontario which is the second biggest Canadian province after Quebec for the population of cows i.e. 7557 farms. The fact that Jim collected some marketing information from his students before starting the business talks about his professionalism. It means that he is a person whose data we can trust. His business idea is to sell
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2 Gentry Motors Inc.‚ a producer of turbine generators‚ is in this situation: EBIT _ $4 million; tax rate (T) is 35%; debt outstanding (D) $2 million; kd 10%; ke 15%; shares of stock outstanding (N0) 600‚000; and book value per share $10. Since Gentry’s product market is stable and the company expects no growth‚ all earnings are paid out as dividends. The debt consists of perpetual bonds. a. What are Gentry’s earnings per share (EPS) and its price per share (P0)? b. What is Gentry’s weighted
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Indirect Costs Direct Costs Legal Support Indirect-Cost Pool Cost-Allocation Base Cost Object: Direct Labor Job for clients Direct Costs 2) 2008 budgeted direct-cost rate per hour of professional labor $104‚000 / 1600 hours = $65 per professional labor hour 3) 2008 budgeted indirect-cost rate per hour of professional labor $2‚200‚000 / (25 x 1600 hours) = $55 per professional labor hour 4) a. Litigation work for Richardson‚ Inc.‚ which requires
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CASE ANALYSIS CHAPTER 1 PLASTICO INCORPORATED A case analysis statement presented to Ms. Nerissa G. Dela Viña a faculty of College of Business Development Economic Management University of Southern Mindanao Kabacan‚ Cotabato As part of the assignment in MM 311 professional salesmanship of BACHELOR OF SCIENCE IN BUSINESS AMINISTRATION by JAYMICO L. ANTONIO 3-BSBA-A Statement of the Problem Sharon Stone did not manage his time effectively because she blames her alarm clock for not
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