Appendix I C1: Equity = Stock Price x Number of Shares Outstanding = $42.09 X 271.5 = $11‚427.435 million C2: Using Adjusted Beta formula: Adjusted Beta = 0.67* historical Beta + 0.33 = 0.67* 0.69 +0.33=0.79 C3: Using CAPM formula: KE = Krf + ß (Km-Krf) = 3.59%+0.79*6.7%=8.89% C4: Using rearranged DGM formula: KE =D1/P0 +g= 0.48(1+5.5%)/42.09 +5.5%=6.7% C5: Using redeemable bond formula: KD: 95.6= 100/ (1+KD/2)40 + 3.375(1-0.38)/(1+KD/2)n KD=4.52% C6: Using WACC formula: Rwacc =4.52*10.19% + 8
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International Financial Management WILKINSON SWORD TRIALS AND TRIBULATIONS IN TURKEY CASE STUDY NUMBER 2 Performed by: Problematique In 2000‚ Wilkinson Sword-Turkey SA‚ (hereinafter “WST”) won the approval for a $12 million capital expenditure to finance the launch of a new product line‚ the Quattro shaving system‚ from its US-based parent company. Mrs. Ozcan‚ President and GM of the Turkish subsidiary‚ had to chose between two financing options: (1) Extension of the USD denominated intercompany
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POW Problem Statement A. A farmer is going to sell her eggs at the market when along the way she hits a pot hole causing all of her eggs to spill and break. She meets an insurance agent to talk about the incident‚ and during the conversation he asks‚ how many eggs did you have? The farmer did not know any exact number‚ but proceeded to explain to the insurance agent that when she was packing the eggs‚ she remembered that when she put the eggs in groups of 2-6 she had even groups with 1 left over
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PART A Courts all over the world have set precedence’s of treating directors as trustees which means in the performance of their assigned legal and corporate duties‚ they stand in a fiduciary relation to the shareholders of the company. A director as a trustee shall act in the best of his ability to benefit the company and not in furtherance of his own interest. Each of the four directors of the company stand in a fiduciary position to the company and thus liable for their acts of omission and
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Hieu Nguyen – FIN 5309 Section 1 Assignment 1 2.3 Table 2.2 X=0 X=1 Total Y=0 0.15 0.07 0.22 Y=1 0.15 0.63 0.78 Total 0.30 0.70 1.00 With W = 3+6X and V = 20-7Y‚ we have: (W|X=0)=3 (W|X=1)=9 Total (V|Y=0)=20 0.15 0.07 0.22 (V|Y=1)=13 0.15 0.63 0.78 Total 0.30 0.70 1.00 a. E(W) = 3 x 0.3 + 9 x 0.7 = 7.2 E(V) = 20 x 0.22 + 13 x 0.78 = 14.54 b. = (3 – 7.2)2 x 0.3 + (9 - 7.2)2 x 0.7 = 7.56 = (20 – 14.54)2 x 0.22 + (13 – 14.54)2 x 0.78 = 8.4084 c. cov
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Q.1a) The following graph is EOQ model with planned shortages. Let the parameters from the basic EOQ model. d = constant demand rate K = setup cost for placing one order Q = order quantity h = inventory holding cost per unit of product per unit of time p = shortage cost per unit of product per unit of time S = inventory level just after an order of size Q arrives So‚ Q– S = Shortage in inventory just before an order of Q units is added Production or ordering cost per
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Problems Q.1 Consider a five-year coupon bond with a face value of $1000 paying an annual coupon of 15%. (i) If the current market yield is 8%‚ what is the bond’s price? (ii) If the current market yield increases by 1% what is the bond’s new price? (iii) Using your answers to part (i) and (ii) ‚ what is percentage change in the bond’s price as a result of 1% increase in interest rates. Q.2 Consider the following FI balance sheet: M. Match Ltd Assets | Liabilities | 2 –year Treasury bond
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The Financial Detective‚ 2005 proportion Financial characteristics of companies vary for many reasons. The two most promi_ nent drivers are industry economics and firm sfategy. Each industry has a financial norm around which companies within the industry tend to operate. An airline‚ for example‚ wourd naturary be expected to have a high of fixed assets (airplanes)‚ manufacturer would be expected to have a lower gross margin than a pharmaceutical manufacturer because commodities such as
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1. The simplest and least expensive way to conduct international business is through: a. foreign licensees. b. the World Wide Web. c. joint ventures. d. trade intermediaries. 2. In a ________‚ two or more AMERICAN small businesses form an alliance for the purpose of exporting their goods abroad. The companies get antitrust immunity and share responsibility for the business equally. a. foreign joint venture b. trade intermediary c. export ventures d. export management company
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Q1. Based on the data in case Exhibit I‚ what inferences can be drawn from the survey responses regarding the herbal shampoo category? As per Exhibit 1 the following inferences can be drawn from the survey regarding herbal shampoo category: * The respondents felt that herbal shampoos need to be used in large quantity for lather and that the protein content is important for making hair strong‚ shiny and soft. * Respondents chose their shampoo based on their hair type and texture. * They feel that
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