Sunny Beach Hotel Evaluation Report Regarding Various Scenarios for Adding a Karaoke Pub in the Sunny Beach Hotel . Dear Sir‚ I have considered the scenarios you suggested to be evaluated from economic point of view regarding the opportunity of accepting the offer of Planet Karaoke Pub to install one of its facilities inside the free space from 2nd floor of Sunny Beach Hotel or to extend the activities of our company with a Karaoke pub located on the beach area administrated by our
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T he Sisyphean Corporation The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30‚000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. The cane manufacturing machine will result in sales of 2‚000 canes in year 1. Sales are estimated to grow by 10% per year each year through year three. The price per cane that Sisyphean will charge
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central problems are solved in a capitalist economy? A capitalist economy has no central planning authority to decide as to what‚ how and for whom to produce and in the absence of any central authority; it looks like a miracle as to how such an economy functions. There can be confusion and chaos in the country when the producers choose to produce cloth and workers choose to work for the furniture industry‚ while the consumers are in need of cars. In order to solve the central problems‚ such
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SCHOOL OF ECONOMICS‚ FINANCE & MARKETING CORPORATE FINANCE MID SEMESTER TEST FIRST SEMESTER 2008 – Part-time STUDENT DETAILS (Please Print Clearly) Family Name: ___________________________________________________________ First Name: _____________________________________________________________ Address: _______________________________________________________________ Tel. No: (BH) ___________________________________________________________ Student Number: _________________________________________________________
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Solutions to Chapter 10 Introduction to Risk‚ Return‚ and the Opportunity Cost of Capital capital gain + dividend ($44 − $40) + $2 = = 0.15 = 15.0% initial share price $40 1. Rate of return = Dividend yield = dividend/initial share price = $2/$40 = 0.05 = 5% Capital gains yield = capital gain/initial share price = $4/$40 = 0.10 = 10% 2. Dividend yield = $2/$40 = 0.05 = 5% The dividend yield is unaffected; it is based on the initial price‚ not the final price. Capital gain = $36 – $40
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1. Tom believes the company should use the extra cash to pay a special one-time dividend. How will this proposal affect the stock price? How will it affect the value of the company? Electronic Timing‚ Inc. (ETI) needs to be careful on how it dispenses the extra cash as a dividend. Issuing the extra cash as a dividend would mean that the shareholders collectively will probably drop by the same amount because of the transfer of wealth from the company to the shareholders individually. Hence‚ the
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24. We can use the debt-equity ratio to calculate the weights of equity and debt. The debt of the company has a weight for long-term debt and a weight for accounts payable. We can use the weight given for accounts payable to calculate the weight of accounts payable and the weight of long-term debt. The weight of each will be: Accounts payable weight = .15/1.15 = .13 Long-term debt weight = 1/1.15 = .87 Since the accounts payable has the same cost as the overall WACC‚ we can write the equation for
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In this chapter we will study that how more than one factor which is associated with expected return‚ are evaluated on capital asset pricing model. We have described earlier that beta specifies the inclination level or slope of characteristic line and this is denoted by βj. Extended capital asset pricing model evaluates many factors other than beta‚ to calculate the expected return of a security. We can add or include some other factors to the equation of expected return of a security‚ to gain more
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EF4313 - Individual Case Questions: “Massey-Ferguson‚ Ltd. (1980)” You are responsible for handing in written answers to the following questions drawn from the Massey-Ferguson case. You can work with others on this assignment‚ but each individual must hand in their own set of answers. 1. Net sales for Massey-Ferguson actually increased between 1979 and 1980. Despite this‚ net income and income from continuing operations both dropped sharply in 1980. Which item on the income statement
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UNIVERSITY SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING‚ ECONOMICS‚ AND FINANCE FIN 318 - PRINCIPLES OF INTERNATIONAL CORPORATE FINANCE COURSE SYLLABUS Term: Spring 2013 Tuesday & Thursday 12:15 – 1:30 Main Campus I. COURSE NUMBER AND TITLE FIN 318-01 – Principles of International Corporate Finance II. INSTRUCTOR Dr. Nicole Grandmont-Gariboldi ngariboldi@stu.edu Office Phone (305) 628-6568 III. TEXTBOOK Fundamentals of Multinational Finance 3rd Ed Moffett ‚ Stonehill &Eiteman‚ Addison-Westley ISBN: 0-321-54164-2
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