Calculate WACC using book values: The weight of debt is calculated by adding the current portion of long-term debt‚ notes payable and long-term debt‚ and dividing it by the sum of debt and equity. $5.4 + 855.3 + 435.9 = $1‚296.6 $1‚296.6 / (1‚296.6 + 3‚494.5) = .27 = 27% The weight of equity is calculated by dividing the total shareholder equity by the sum of debt and equity. $3‚494.5 / (1‚296.6 + 3‚494.5) = .73 = 73% Cost of Debt To find the cost of debt I subtracted the tax savings from
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The industry that I chose to research is the retail industry and the publicly traded corporation that I chose within that industry is J.C. Penny Company‚ Inc. With this paper I will discuss a little background about J.C. Penny Company‚ Inc.‚ analyze the business level strategies that are most important to the long term success of the firm‚ analyze the corporate level strategies that is most important‚ the competitive environment‚ as well as slow cycle and fast cycle markets. J. C. Penney Company
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lies were any different from each other. The statistical analyses showed that neither those who were paid less or more had differences in their lies. Over the years‚ cognitive dissonance has been tested and refined by many psychologists‚ most notably Cooper and Fazio; their research determined the crucial four steps that lead to a person’s attitude change in cognitive dissonance. In order to reach cognitive dissonance a person must first have negative feelings produced‚ then they must feel responsible
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The Mini Cooper Company once raised a question: if Mini is not a car‚ what will it be? Although the brand didn’t know what kind of answer it would receive‚ the question caught consumers’ eyes and the replies helped the company to identify and satisfy customer demand. Apparently‚ marketing circumstance is complex and consumer psychology is hard to touch. Thus brand managers take great time and effort to resonate consumers‚ so as to promote consumption. For example‚ displaying advertisements on TV
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Fenimore Cooper was an extremely popular novelist in the United States during the early 19th century. He was known for his romantic adventurous tales of historical fiction‚ particularly about the sea or the frontier. Cooper spent time in the navy before getting married and embarking on his writing career. Influenced by the relationship with his wife and his time at sea‚ Cooper went to on to become one of America’s most influential writers. James Fenimore Cooper was the son of William Cooper‚ a merchant
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Davidson Inc. Motorcycle Industry INTRODUCTION The purpose of this report is to develop a strategic corporate objective for HarleyDavidson Inc.‚ a publicly traded‚ employee owned manufacturer of heavyweight motorcycles‚ recreational and commercial vehicles‚ military defense items‚ and small engines‚ distributing its products to domestic and international markets targeting all men and women of all ages. INDUSTRY AND COMPETITIVE MARKET The industry under study is the motorcycle industry consisting
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How Blue Nile Inc. is Changing the Jewelry Industry Blue Nile is a true e-commerce (EC) which in 1999 launches an online marketplace where sells certified diamonds and fine jewelry at lower than retails prices. Their products must be stored‚ shipped and physically delivered‚ therefore‚ one or more of the commerce processes (product‚ process‚ and delivery) takes place offline and they could be classified as a partial e-commerce. Blue Nile is an e-marketplace owned and operated by the company itself
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The Australian Labor Party’s 1972 campaign slogan ‘It’s Time’ was used numerous times leading up to the election. The campaign comprised of various television commercials with the popular jingle playing throughout it. The initial goal was to popularise the phrase and create public awareness of the Labor Party. The central theme of the movement and was commended for its effectiveness and for generating excitement. The words ‘It’s Time’ were used to signal that there was a need for a major shift away
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was the change to Romance or Romanticism. The big change was not by one person‚ but with several people involved. With many contributions of famous writers such as Irving‚ Cooper‚ and Bryant composed the stories and poems which all used Romanticism in their own unique ways. In “The Pioneers” by James Fenimore Cooper‚ Cooper displays romanticism by creating a connection between humans and nature. Cooper’s goal with this story was too show that settlers displayed the carelessness of their society
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its cash flow therefore it is a way to; a) Evaluate the Investment Decision b) Decide on a debt policy c) Appraise the performance of top managers 2) Compute the corporate WACC. Be sure to state all your assumptions to get the various inputs to the WACC. r_e=r_f+ β(EMRP) WACC= r_e (E/V)+ r_d (D/V)(1-t) E=Midland’s Equity Market Value D=Midland’s Net Debt (E/V)= Weight for the cost of equity (D/V)= Weight for the cost of V (E+D)= Midland’s total Market Value
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