Product cost is the cost of direct labor‚ direct materials‚ and manufacturing overhead that are consumed to create a product. Product cost can also be considered the cost of the labor required to deliver a service to a customer. Direct Material Cost Definition: Direct material cost is the cost of materials used to manufacture a product or provide a service. Direct Labor Definition: Direct labor is production or services labor that is assigned to a specific product‚ cost center‚ or work order
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e Key Players Valuation Risk Factors Post LBO Plans Final Takeover Valuation RJR NABISCO- Pre Bid Valuation Assumptions: Adjusted Beta -0.78 D/E Ratio-0.71 Tax-0.35 Unlevered Beta-0.53 Risk-free rate-9% Market risk premium5.9% Cost of Equity-12.15% Growth Rate-3.00% Number of Shares outstanding-$247.40 million Historical Perspective LBO Candidate Special Committe e Results: Intrinsic Value$116.43 PV of Cash flows$27‚693 million. PV of Interest Tax Shield-$1124.77
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Financial Management Unit – 4 Capital Structure Capital Structure • It refers to the kinds of securities and the proportionate amounts that make up capitalization. • A decision about the proportion among the three types of securities viz.‚ Equity shares‚ Pref. Shares and Debentures refers to the Capital Structure of an enterprise. What is “Capital Structure”? • Definition The capital structure of a firm is the mix of different securities issued by the firm to finance its operations
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CAPITAL STRUCTURE: MEANING: - Capital structure of a firm is a reflection of the overall investment and financing strategy of the firm. - Capital structure can be of various kinds as described below: ▪ Horizontal capital structure: the firm has zero debt component in the structure mix. Expansion of the firm takes through equity or retained earnings only. ▪ Vertical capital structure: the base of the structure is formed by a small amount
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shareholders and customers‚ what business processes must we excel at? Learning and Growth Perspective Financial Perspective • Profitability – This perspective evaluates the profitability of the strategy. • Objectives: – Cost reduction. – Operating income and return on capital. Customer Value Perspective • Customer Satisfaction – This perspective
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2.5 Working Capital This section includes: Definition and classification of working capital Determinants of Working Capital Measurements of Working Capital Working Capital Financing Management of Working Capital Inventory management Cash Management Receivables Management INTRODUCTION : The term working capital is commonly used for the capital required for day-to-day working in a business concern‚ such as for purchasing raw material‚ for meeting day-to-day expenditure on salaries‚ wages‚ rents rates
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Capital Expenditure vs Working Capital Capital expenditures are money spent by a company to acquire long-term assets. It is neither for short-term gain nor can be easily translated into cash. These investments are inevitable to ensure the continuing business operations and also for future expansion of the company. Types of Capital Expenditures Typically‚ capital expenditure refers to the expenses that a company incurred to purchase tangible fixed assets and intangible assets. Additionally
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Capital Budgeting Introduction Capital budgeting is the process of evaluating and selecting long-term investments that are consistent with the firm’s goal of maximizing owner wealth. A firm using capital budgeting‚ their goal is to see if there fixed income will cover itself for profit. Fixed incomes are things such as land‚ plant and equipment. When a firm using a machine to produce its good or service. They most of the time what the machine to produce the amount that they paid for the machine
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Individual and LT DQs‚ weekly reflection‚ and individual paper. For the individual paper (use your Leadership Plan from LDR/711A) and prepare a short PPT addressing these points: Describe the leader you aspire to be in 3-5 years in a role you aspire to have and address the following areas: How do your current performance strengths and vulnerabilities contribute to your performance as the leader you aspire to be? How do you need to change? How have the seminal theorists discussed in this course
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Merriam-Webster online dictionary (2011) defines capital punishment as punishment by death for a crime. There are many factors that go into the process of capital punishment and it must start with a crime followed by an arrest‚ trial‚ conviction‚ appeals process and ultimately the execution of the individual. Through the many stages of the process there numerous individuals who are affected‚ including the criminal and their family‚ the victim and their family‚ jury‚ judge‚ witnesses and administrators
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