Cost of Capital questions and practice problems Questions 1. What does the WACC measure? 2. Which is easier to calculate directly‚ the expected rate of return on the assets of a firm or the expected rate of return on the firm’s debt and equity? Assume you are an outsider to the firm. 3. Why are market-based weights important? 4. Why is the coupon rate of existing debt irrelevant for finding the cost of debt capital? 5. Under what assumptions can the WACC be
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Marketing of Services Services: A service is any act or performance‚ one party can offer to another‚ that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. Customer Service: It is the service provided in support of a company’s core products. It includes‚ answering questions‚ taking orders‚ handling complaints‚ repairs etc. These are for building customer relationships and not the ones provided for sale by
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Strengths: SWOT ANALYSIS • Cost advantages help to beat competition • Loyal customers • Strong brand name‚ because it sells civil‚ military aircrafts to all across the world • Raw materials are abundant locally • Low manufacturing cost center in brazil • The company has built a strong brand positioning by establishing plants and maintenance centers in china‚ Portugal‚ France and united states • Strong sales growth for corporate jets • Well-built financial growth • The supply chain network gives
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Case Study –Nike‚ Inc.: Cost of Capital FIN202a-Spring 2011 1. Please define Weighted Average Cost of Capital (WACC). Write down the WACC formula‚ and discuss its components. WACC (Weighted Average Cost of Capital) is a market weighted average‚ at target leverage‚ of the cost of after tax debt and equity. It is a critical input for evaluating investment decision‚ and typically the discount rate for NPV calculation. And it serves as the benchmark for operating performance‚ relative to
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HUMAN AND SOCIAL CAPITAL BY: JOSEPH KIOKO REG. NO: D80/61281/2011 DATE: 05/06/2013 LECTURER: PROF. P. O. K’OBONYO Introduction and Definitions: Human capital is defined by the OECD (1998‚ p9) as “the knowledge‚ skills and competences and other attributes embodied in individuals that are relevant to economic activity.” While Duration of schooling and levels of qualification are the standard measures used to measure human capital the OECD itself
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QUESTIONNAIRE FOR THE STUDY OF PERFORMANCE APPRISAL SOCIO DEMOGRAPHIC FACTORS:- 1. NAME: 2. SEX: MALE FEMALE 3. AGE: UPTO 20 Y 20 – 30 Y 30 – 40 Y ABOVE 40 Y 4. MARITAL STATUS: MARRIED UNMARRIED 5. EDUCATIONAL QUALIFICATIONS: 6. DEPARTMENT: MANAGEMENT HR R &
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3/12/15 Dollar General Jacky Akpan Taha Kermalli Allison Schumacher Anlin Wang 1 Dollar General‚ 2007 ● Quality consumer goods in select categories ● Focused inventory on fastest-turning SKU’s ● Targeted demographics ignored by Walmart Store Dollar General Walmart Square Feet 6‚900 100‚000 SKU’s 4‚900 75‚000+ ~20‚000 or less 50‚000+ Surrounding Populations 2 1 3/12/15 Pricing and Brands ● 30% of products priced at $1 or less ● Majority of products under $10 Brands Name Brands
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started on 5 August 2013. • The mounting of the five scientific instruments was completed at ISRO Satellite Centre‚ Bangalore‚ and the finished spacecraft was shipped to Sriharikota for integration to the PSLV-XL launch vehicle.. • The total project cost may be up to 4.54 billion or 450 cr rupees. Monitoring MOM • The spacecraft is being currently monitored from the Spacecraft Control Centre at ISRO Telemetry‚ Tracking and Command Network (ISTRAC) in Bangalore with support from Indian Deep Space
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Developing an eco-friendly stadium or arena appears to be at the forefront of almost every professional sports organization. I believe in the initial design/planning phases architects and facility planners must take notice in the direction which the sun sets and rises. One area of concern is the purpose of constructing the stadium and what is it’s intended use and for how long (Ammon‚ et. 2010) Also‚ if the organization is located in an extremely humid environment‚ I would most likely construct a
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Ronald Coase noted‚“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example‚ the opportunity set for this Friday night includes the movies‚ a concert‚ staying home and studying‚ staying home and watching television‚ inviting friends over‚ and so forth. The opportunity cost of taking job A included the forgone salary of $102‚000 plus the $5‚000 of intangibles from job B. Opportunity cost is the sacrifice of
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