FIN3101 Corporate Finance Practice Questions Topic: Capital Budgeting 1. Marsh Motors has to choose one of two new machines. Machine 1 costs $180‚000‚ has a 3 year life and EBIT of $108‚750 per year. Machine 2 costs $360‚000‚ has a life of 6 years and EBIT of $122‚875 per year. Assume straight line depreciation over the life of the machine. Marsh is a levered firm with a debt equity ratio of 0.40. The beta of equity is 1.125 while the beta of debt is 0.25. The market risk premium is 8 percent
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The expansion of Western Europe started with the Iberian phase. Spain and Portugal‚ the two countries of the Iberian Peninsula‚ had a short-lived yet important role in European expansion. European expansion then turned to Western Europe. Western Europe consists of the Dutch‚ French‚ and British. While Western Europe was exploring new worlds overseas‚ the Russians were expanding westward across all of Eurasia. Religion played a major role in expansion for both the Portuguese and the Spanish due
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doubled the size of the United States. The move westward was not justified and was forcing people out their homes and they were getting killed. Westward expansion supported the US and was not fair to the nearby places. Us gained much land after the Louisiana Purchase and Thomas Jefferson supported the expansion. The US Westward expansion made US get more money and grow in population. When we gained California we
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The most underrated factor of westward expansion would have to be the railroad. Many would think of the most important factor as the gold rush of 1848‚ but before mass droves of people could move westward‚ an easier way of traveling had to be constructed and railroads were the answer. Before railways‚ the Oregon Trail lead people from major cities like Independence‚ Missouri to Oregon City or Sacramento in Oregon and California. This ‘train’ of sorts moved as low as 350‚000 people across America
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Thermal Expansion and Contraction Most of the matters‚ without some exceptions‚ expand with the increasing temperature. When you give heat to matters; speed of its particles increase and distance between them also increase which results in the increase of the volumes of matters. All expansions occurs in volume of the substance however‚ sometimes some of the dimensions of them expand more with respect to others. In this case we neglect the less expanded ones and assume expansion like linear expansion
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Early American Expansions Ever since the beginning of time it has been in the nature of man to move and expand their area whether it be for food or greed. Although‚ most cases in history will show that expansion was done for greed such as the Roman Empire from 800 BC to 500 AD or the Crusades that were on and off from 1096 AD – 1272 AD. That same urge to expand did not stop when the America’s were discovered. It all started with the transatlantic migration to the New World. The settlers of
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The Original Store Expansion Strategy: In 1992 and 1993 Starbucks developed a three-year geographic expansion strategy that targeted areas with favorable demographic profiles‚ that could be serviced and supported by the company’s operations infrastructure. A large city was selected to serve as a focal point for each targeted region. Starbucks professional teams were strategically positioned at these focal points to supervise opening of another 20 stores in each city in the first two years. Following
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Cultural capital exists in three states‚ each of which requires economical capital as the primary impetus for accumulation . First‚ the embodied state of cultural capital includes the individual’s investment in self-improvement such as cultivating hobbies and interests. The most difficult form of capital to transfer is embodied capital‚ which requires time and merit. Second‚ the objectified state is the appreciation of cultural goods and materials such as books and instruments by those who hold the
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THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS By WESLEY NAIDU Submitted in partial fulfillment of the requirements for the degree MAGISTER COMMERCII in FINANCIAL MANAGEMENT SCIENCES In the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES At the UNIVERSITY OF PRETORIA SUPERVISOR: Prof. JOHANNES HvH DE WET November 2011 -i- ABSTRACT The topic of capital structure has been one that has plagued the academic world for a number of years
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agencies forming the modern executive bureaucracy. Accompanying this growth in the size of the executive bureaucracy has been the expansion of the prerogative of the executive himself. This extension of the executive’s power can predominantly be explained by the theory of the unitary executive. This idea concerning the power of the executive has been a foundation for the expansion of executive jurisdiction‚ and has heavily contributed to the evolution and development of the executive power that we know
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