Labor Relations Chapter 7 Notes Pg 293 Industrial Wage Differentials Industrial wage differentials may be explained in terms of three interrelated factors: (1) the degree of completion or monopoly in the product market (2) the value added by workers in a particular industry (3) the percentage of total costs that labor costs represent - Competition in the product market - Value added by employees - Labor costs as a percentage of total costs. A firm’s degree of labor intensiveness a measure
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CASE STUDY ON CASH BUDGETING Party Favours Limited (PFL) distributes party supplies and novelties through a network of independent‚ dedicated sales people across Canada. PFL plans to expand its network of sales distribution network into western Canada and consequently forecasts sales to total $5.6 million and $5.8 million in calendar years 2011 and 2012 respectively. PFL has been in operation for over ten years‚ and therefore has a strong understanding of the seasonal sales cycle that party
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“INTRODUCTION TO CORPORATE FINANCE” “Where is This Slide From”? • Most of the slides we use in this unit are provided by the Publisher of the required text “…as down-loaded from Connect…” • Sometimes we modify slides by adding or removing content. Other times we use slides from other sources. Occasionally we ‘make’ slides. • Note that lecture slides are not numbered sequentially. • Slides are identified in the lower RHS corner. • Identifier “1-3” refers to text chapter 1 slide 3. •
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as the following: F2- Revenue‚ G2 – Expenses‚ H2 – Balance. 3 6 Create a one-variable data table for the range E2:H18 using the number of attendees as the Column input cell. Format the results with Accounting Number Format with two decimal places. 7 7 Copy the number of attendees substitution values from the one-variable data table‚ and then paste the values starting in cell E22. 4 8 Type $50 in cell F21 and complete the series of substitution values from $50 to $100 at $10 increments. 2 9 Enter
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ethics of the day or simply the reactions to the latest scandals covered on a weekly basis. People in business have not suddenly become immoral. What has changed are the contexts in which corporate decisions are made‚ the demands that are being made on business. and the nature of what is considered proper corporate conduct. Ethics is the discipline that deals with moral duty and obligation‚ can also be regarded as a set of moral principles or values. Morality is a doctrine or system of moral conduct
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Chapter 10 The Cost of Capital LEARNING OBJECTIVES After reading this chapter‚ students should be able to: • Explain what is meant by a firm’s weighted average cost of capital. • Define and calculate the component costs of debt and preferred stock. • Explain why retained earnings are not free and use three approaches to estimate the component cost of retained earnings. • Briefly explain why the cost of new equity is higher than the cost of retained earnings‚ calculate the
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Question 1 (1 mark) The methods that a firm can use to evaluate a potential investment: 1) ‘Discounting’ Methods: Net Present Value (NPV): the present value of the future after-tax cash flow minus the investment outlay made initially. The decision rule for the NPV as follows: invest if NPV> 0‚ do not invest if NPV< 0 Internal Rate of Return (IRR): calculates the interest rate that equates the present value of the future after-tax cash flows equal that investment outlay;
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1. Calculate TRUST’s company after-tax WACC. The risk-free rate was 4.21%‚ the market risk premium was 6% and the company tax rate was 30%. The WACC should be rounded to four decimal places. After-tax WACC = rD (1-Tc) D/V + rE E/V rE = rf + βequity(rm – rf) rE = 0.0421 + 0.81(0.06) rE = 0.0907 E = number of outstanding shares x current share price E = 60 million x $3.43 E = $205.8 million D = $44 million bank loans + $1.2 million short-term hire purchase commitments D = $45.2 million
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MAF302 Corporate Finance Study Guide Important Instruction This study guide provides you of an overview for each of the topic taught in this unit. These overviews however are not sufficient to learn all the materials in each of the topic. I therefore would suggest you to follow the materials in lecture notes and workshops. It is also essential to read and consult the corresponding text book chapters to develop your concept and knowledge in this unit. You will also find some references
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understanding of Finance function of a corporation and build capacity to apply theory in real world situations. The course will present the ‘Big Picture’ of Corporate Finance so that students understand how things fit together. After successfully completing the course‚ students should be able to take optimal decisions in a corporate setting‚ when working as professionals in the field. COURSE OUTLINE Introduction to Corporate Finance: Financial Management; Corporate Finance; Corporate Finance vs. Financial
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