Acknowledgement We would like to acknowledge all the help we have received from our lecturer in collecting the data and using the cases. Besides‚ every member in our group is contributed in completing the report averagely. Abstract: Investment appraisal techniques are adopted to assess whether or not capital expenditure on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain
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M&A & Restructuring Strategies. Merger: Two Firms agree to integrate operations on relatively equal basis(usually 1 dominates another in mkt share/size/asset value) Hostile takeover: (delivers higher shareholder value than friendly acquires)(Preannouncement returns of hostile takeover anticipated with increase in bidder & target’s share price). Diversification creates value by using excess resource. Restructuring used to correct with ineffective mergers/acquisitions. M&A used as means of growth to
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HEC Paris Financial Markets Spring 2012 Final Exam “Cheat Sheet” 0. Basic Statistics (a) Consider an n-outcome probability space with probabilities p1 ‚ p2 ‚ . . . ‚ pn . Consider two discrete random variables X and Y with outcomes (X1 ‚ X2 ‚ . . . ‚ Xn ) and (Y1 ‚ Y2 ‚ . . . ‚ Yn ). 2 The we have the following formulas for means (µX ‚ µY )‚ variance (σX )‚ standard deviation (σX )‚ covariance (σX‚Y )‚ and correlation (ρX‚Y ) µX = EX = E(X) = p1 X1 + p2 X2 + · · · + pn Xn µY = EY = E(Y ) =
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arrive at AI. From 01/01/09‚ allow 250% deduction. Unutilized donation can be carried forward for a maximum of 5 YAs. 3. Singapore Sourced Dividends ~ paid by SR Company Effect from 1/1/08‚ all SGP sourced div. will be governed under é 1-tier corporate tax system exempt in é hands of é S/H (NT‚ less out) Income Tax Computation for YA 2012 Net accounting profit Less: Non-taxable income previously credited Add: Expense charged but not deductible Less: Expense deductible but not charged in
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Week 1: Introduction to Corporate Finance 1.4. Assignment 1a Due date: January 30‚ 2011 Instruction: Please submit your assignment as an attachment to my Blackboard E-mail by midnight on the due date Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre‚ a professional tennis player who has just come to the United States from Chile
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Financial Management Assignment (10 Sep‚ 2012) ------------------------------------------------- Ch. 5: 1 (a-e)‚ 4‚ 5‚ 7‚ 10‚ 11‚ 12‚ 15 ------------------------------------------------- FM1 Takumi KAWAI‚ Pham NGUYEN‚ Yang CHEN‚ Bi CHAO #1 a. What is the payback period on each of the following projects? Payback period: A 3 years‚ B 2 years‚ C 3years b. Given that you wish to use the payback rule with a cutoff period of two years‚ which projects would you accept? “B” Only B meetsthe
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Consider a project to produce solar water heaters. It requires a $10 million investment and offers a level after-tax cash flow of $1.75 million per year for 10 years. The opportunity cost of capital is 12 percent‚ which reflects the project’s business risk. Suppose the project is financed with $5 million of debt and $5 million of equity. The interest rate is 8 percent and the marginal tax rate is 35 percent. The debt will be paid off in equal annual installments
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QUESTION 1: 1. If the first deposit is at 36 years and the last expected deposit is at 65 years‚ then annual deposits will be made for 30 years. Expected annual withdrawals are $90‚000 for 15 years from the retirement fund with a bank that offers compound interest of 8% annually. Calculation Present value (PV) =? Future value (FV) = (90‚000*15) = $1‚350‚000 Periodic payment amount (PMT) =? Interest rate per period (Rate) = 8% or 0.08 Number of payment periods (Nper) = 30 Using the Excel
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Review Problems and Solutions for Chapter 6: Process Selection and Facility Layout For the following three problems (1‚ 2‚ 7)‚ we assume that parallel workstations are not allowed. 1. An assembly line with 17 tasks is to be balanced. The longest task is 2.4 minutes‚ and the total time for all tasks is 18 minutes. The line will operate for 450 minutes per day. a. What are the minimum and maximum cycle times? b. What range of output is theoretically possible for the line? c. What is the minimum
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Sample Test_MT2_FINA 3101_summer_2013 ____ 1. Travis Corp.’s bonds currently sell for $1‚050. They have an 8% annual coupon rate and a 20-year maturity‚ but they can be called in 5 years at $1‚120. Assume that no costs other than the call premium would be incurred to call and refund the bonds‚ and also assume that the yield curve is horizontal‚ with rates expected to remain at current levels on into the future. Under these conditions‚ what rate of return should an investor expect to earn if
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