and had an ending share price of $104. Compute the percentage total return. The return of any asset is the increase in price‚ plus any dividends or cash flows‚ all divided by the initial price. The return of this stock is: R = [($104 – 92) + 1.45] / $92 R = 0.1462 or 14.62% Calculating Returns Rework the problem above‚ but this time assuming the ending share price is $81. Using the equation for total return‚ we find: R = [($81 – 92) + 1.45] / $92 R = – 0.1038 or –10.38%
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proposed financing plan‚ describe your approach (qualitatively) to value AirThread. Should Ms. Zhang use WACC‚ APV or some combination thereof? Explain. (2 points) * From the statement of AirThread case‚ we know that American Cable Communication want to raise capital by Leveraged Buyout (LBO) approach. This means ACC will finance money though equity and debt to buy AirThread and pay the debt by the cash flows or assets of AirThread. * In another word‚ it’s a highly levered transaction using
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ASSIGNMENT 1 Time Value of Money: PV & FV for Single Cash Flows 1.- Is this true or false? $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest. (Answer: False) 2.- Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is 6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar) will she need to earn today to buy the bag
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Dunnes stores. SWOT Analysis: Strengths: Established as self-financed company. Strong partnerships with good quality popular brands. Revolutionised the whole retail industry forever through innovation from its founder Ben Dunne. Weakness’s: Labour force strikes? Opportunities: Expand to more countries than the current 5. Expand to or add new business sectors such as electronics or hardware. Invest in more foreign cuisine to keep up with their foreign competitors such as Lidl and Aldi. Threats: Well-known
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and Tissues 1. Which of the following is NOT a membranous organelle? a. Lysosomes b. Peroxisomes c. Mitochondria d. Ribosomes e. Endoplasmic reticulum Answer: d 2. Which organelle contains digestive enzymes? a. Rough endoplasmic reticulum b. Smooth endoplasmic reticulum c. Lysosome d. Golgi apparatus e. Mitochondria Answer: c Lysosomes are membrane bound sacs of digestive enzymes. They are nicknamed "suicide sacs". 3. Which organelle is considered the powerhouse of
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ntalWhat is Incremental? The product is decomposed into a number of components‚ each of which is designed and built separately (termed as builds). Each component is delivered to the client when it is complete. This allows partial utilization of the product and avoids a long development time. It also avoids a large initial capital outlay and subsequent long waiting period. This model of development also helps ease the traumatic effect of introducing a completely new system all at once. There are
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1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity? Market value is the price at which an asset would trade in a competitive auction setting. Book value is the value of an asset according to its balance sheet account balance. The big difference is the inability to record certain intangible assets for example: brand value‚ human capital… these assets would provide earnings growth in the future and as far as
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The Adding Machine – Director Character Analysis Mr. Zero – The main character in the Adding Machine‚ Mr. Zero is an individual that has clearly become a victim of a mechanized and industrial society. This society has robbed him of his true humanity and he has become someone who associates solely with his profession. Zero‚ a bookkeeper for the past 25 years‚ has let his profession overtake his life in multiple ways. He truly believes in his mind that holding the same profession for the past
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What is Incremental Analysis? By Emily James-Blanchard AC 330-04 What is Incremental Analysis? Basically‚ it’s a managerial decision making process. Decisions are a huge part of being a manager. Decision making does not always involve lots of people and a set schedule‚ but decisions vary in their complexities and some involve a little research to see if they will work out. There are four steps to incremental analysis. They are very simple: 1.Identify the problem‚ 2.Determine and evaluate possible
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Incremental in comprehensive analyses both serve similar purposes in decision making in the workplace. The argument is that incremental is more economical than and just as effective as comprehensive analyses. Since both are used to make important decisions within a company‚ which one will serve the best purpose while still being justifiable and cost effective to complete? Both will complete the same task‚ but one will do it better and we will be explaining why incremental analyses are the better
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