1) Estimate the WACC that is appropriate for discounting the Collinsville plant’s incremental cash flows. You should estimate and present each component of the WACC separately‚ explaining briefly but clearly what assumptions you are making for each of them. In the same spirit‚ estimate the appropriate all-equity cost of capital for the APV-based valuation. WACC calculation. WACC = RD*(1-t)*D/(D+E)+RE* E/(D+E) Cost of equity We assume that risk free rate (Rf) equals rate of long-term Treasury
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4. Responsibility of Corporations: Rationale‚ source and limits Whether there is social responsibility or obligation proper to speak of towards corporations is a topic of debate. However‚ the suspicious perception of business personnel towards CSR is understandable‚ essentially because the policy choices and actions of government may directly impact their operations‚ with a spillover effect on their responsibility to their stakeholders especially their employees and customers. a. Theoretical
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1 Intercorporate Acquisitions and Investments in Other Entities McGraw-Hill/Irwin Copyright © 2009 The McGraw-Hill Companies‚ Inc. All rights reserved. The Development of Complex Business Structures • Enterprise expansion as a means of survival and profitability – Size often allows economies of scale – New earning potential – Earnings stability through diversification – Management rewards for bigger company size – Prestige associated with company size 1-2 Organizational
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Question 1 Harnischfeger’s corporate recovery plan was a four pronged approach that involved (1) changes in top management‚ (2) cost reductions to lower the break-even point‚ (3) reorientation of the company’s business and (4) debt restructuring and recapitalization. These changes at first glance appear to have allowed Harnischfeger to improve its financial performance from a net loss of $3.49 per share in 1983 to a net gain of $1.28 per share in 1984. In addition‚ Harnischfeger has appeared
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ACCOUNTING NOTES FOR MY PERSONAL USE 4/12/2013 ELISHA VERIWA | Introduction to Accounting Accountancy is the process of communicating financial information about a business entity to users (stakeholders) such as shareholders and managers (Elliot‚ Barry & Elliot‚ Jamie: Financial accounting and reporting). Accounting has been defined as: * the art of recording‚ classifying‚ and summarizing in a significant manner and in terms of money‚ transactions and events which are‚ in part at least
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*Business Ownership ( Sole Proprietorship / Partnership / Corporation *Activities ( Service Concern / Merchandising (Trading) / Manufacturing *Types of Business (Source of Income) ( Service & Merchandising / Trading {Sole Proprietorship} *Functions of Accounting Work ( Recording / Classifying / Summarizing *Accounting- “art of recording‚ classifying & summarizing in a significant matter and in terms of money; transactions and events w/c are in part at least of a financial character and interpreting
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THE REVENUE SOURCES OF FACEBOOK.COM Facebook Revenues Up to $700 Million in 2009‚ On Track Towards $1.1 Billion in 2010 Facebook is tight-lipped about its revenue numbers‚ which is typical of private companies. The most it has said publicly is that it became “free cash-flow positive” as of last September. At the time‚ we estimated it was set to bring in around $550 million for the year in revenues based on previous reports that we and others had heard‚ and from our own calculations. But how did
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Case Question: In light of the International Division that Tingzon inherited‚ where and how should Jollibee expand next? Assessment: Jollibee Foods Corporation recognizes that a reconfiguration of its international strategies will assist the company in embarking on a plethora of opportunities outside of its existing markets. New Guinea‚ Hong Kong‚ and the United States offer the chance for the company to grow its brand globally‚ but success is not guaranteed. Jollibee can capitalize on its
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BACKGROUND Danaher Corporation is a large global company and its products are concentrated in the fields of design‚ manufacture‚ and marketing of industrial and consumer products. Furthermore it operates in four segments: Professional Instrumentation‚ Medical Technologies‚ Industrial Technologies‚ and Tools & Components MAIN PROBLEM After looking at some of the problems that were laid out within this case the major one that is really discussed is whether or not Danaher could continue to
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ACCOUNTING/291 Capital Expenditure vs Revenue Expenditure Carlos Flannigan XACC/291 Instructor: Tameka Johnson October2 ‚2014 Expenditures are unavoidable for any company to exist in the competitive market‚ to expand the business or to find new opportunities to open up beneficial business
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