Corporate Finance and Investment 1. Define “Working Capital” Working Capital=Current Assets-Current Liabilities =Accounts Receivable + Inventory - Accounts Payable “Working capital is how much in liquid assets that a company has on hand. Working capital is needed to pay for planned and unexpected expenses‚ meet the short-term obligations of the business‚ and to build the business.” 2. Give concrete measures how w.c. can be optimized (receivable‚ inventories (JIT
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Case 1- Marriott Corporation: The Cost of Capital Some preliminary questions: 1. What do you think about Marriott’s policy of repurchasing shares? Repurchase whenever stock price < warranted equity value Does this mean the market is inefficient? 2. Why does Marriott manage rather than own hotel assets? Finding limited partners on a hotel project is equivalent to selling private equity in the project Is there any reason to
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WACC: Weighted average cost of capital =WACC= SS+B×Rs+BS+B×RB×1-tC note: Rs ‚ cost of equity; RB ‚ cost of debt; tC ‚ corporate tax rate. For cost of equity‚ Rs‚ we calculate it by using the SML‚ according to CAPM model. Rs=RF+β×[RM-RF] As we can see in the chart behind the case‚ beta of Worldwide Paper Company is 1.10; the Market risk premium (RM-RF) is 6.0%. Because this on-site longwood woodyard project has six year life and the investment spend over two years‚ the total long of this program
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Marriott Corporation: The Cost of Capital (Abridged) Executive Summary: The case &quot;Marriott Corporation: The Cost of Capital (Abridged)&quot; focuses on an ideal opportunity to review the capital asset pricing model and the weighted average cost of capital through calculation of the cost of capital for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three divisions utilizing CAPM and WACC. This case illustrates
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______________________________________________ SUBJECT: COMPANY VALUATION CASE STUDY: BIOTECHNOLOGY S.A Prepared by: Tran Ngoc Minh (MEBF 5th) Assignment: Company Valuation Case Study: BioTechnology Student: Tran Ngoc Minh – MEBF 5th TABLE OF CONTENT I. Introduction of company valuation methods and process........................................................3 1. Abstract................................................................................................................................3 2. Valuation methods.....
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corresponding case is TSE International Corp. - case # UV0114. 1. What is the situation that this company faces? Yeats Valves and Controls‚ Inc. is currently considering a merger with TSE International Corporation. The founder‚ who is Chair and CEO‚ W.B. “Bill” Yeats‚ is about to reach his 62nd birthday and does not have a succession plan. He is concerned with the future of his company as none of the other executives can take his place because they are all specialists. Bill Yeats believes that TSE can provide
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http://www.streetofwalls.com/finance-training-courses/hedge-fund-training/hedge-fund-interview-questions/ HEDGE FUND INTERVIEW QUESTIONS Company Specific Questions: Who runs the fund: when was it founded and by whom. What is the background of its founders? (IVY?) Who are the financial backers? In what instruments do they invest? Equities? Debt? Derivatives? Is there a regional or sector focus? What is the typical investment time horizon? What kind of investments have they made in the past
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1. Weighted Average Cost of Capital (WACC) is used to determine the average cost of financing a company. Companies are funded using both debt and equity and both require varying rates of return. WACC allows you to put a “weight” on the different types of financing and their differing rates to get a total cost of capital. Team 12 does not agree with Joanna Cohen’s WACC calculation because we feel she took some liberties in her numbers‚ the most notable being that of equity. Ms. Cohen used book
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the privilege to earn a position on the Fortune 500 means that you are one of the most powerful companies in America. If a company has the ability to hang around for over 40 years that means they have withstood the changes most industries will endure. Since the popularity of electronics began in the late 20th century‚ many corporations like Sony and Apple has tried to fill consumers wants and needs. Trying to meet these goals has created opportunities for many big box retailers to leverage their ability
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[pic] [pic] RAYMOND LTD. Internship Report on Working Capital and Portfolio Management SUBMITTED TO: SUBMITTED BY: DR. NEHA PURI TANMAY BHASIN FACULTY GUIDE B.COM (HONS)III ACCF A3104609018 AMITY UNIVERSITY
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