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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CASE STUDIES IN FINACE CASE STUDY 3: ESTIMATING THE COST OF CAPITAL QUESTION 1: a)b)c) The Capital Assets Price Model (CAPM) is used to describe the relationship between risk and expected return and is often used to estimate a cost of equity (Investopedia‚ 2009). The cost of equity(COE) of the discount rate is: R = Rf + β*(E - Rf) (1) Rf = Risk free rate of return‚ usually U.S. treasury bonds β = Beta for a company E = Expected return of the market
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worst places to be in were prisons called Concentration Camps. These prisons were very brutal‚ well organized‚ and there were different types of camps. First‚ these Concentration Camps were very brutal. Some examples of brutality are “when a person is captured they were beaten‚ tortured‚ starved‚ murdered by being worked to death‚ and by being put in gas chambers or large furnaces. A result of these actions 100 people died daily at the camps” (The Concentration Camps). The point of these “camps” was
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Industry structure is often measured by computing the Four-Firm Concentration Ratio. The concentration ratio of an industry is used as an indicator of the relative size of firms in relation to the industry as a whole. This may also assist in determining the market form of the industry. One commonly used concentration ratio is the four-firm concentration ratio‚ which consists of the market share‚ as a percentage‚ of the four largest firms in the industry. There are four major types of market structures:
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After visiting Dachua concentration camp‚ I learned that my worldview and the worldview of those who were imprisoned collided on the issue of human development. The lifestyle in the concentration camp was formed to incorporated dehumanizing tactics that altered the prisoners’ human development. The prisoners’ names were removed and given a number so incorporate the lack of individuality and personalization. Their belongings‚ possession‚ social class‚ and job was striped from their identity and removed
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Four-Firm Concentration Ratio Definition of the Four- Firm Concentration Ratio This is one of the most common concentration ratios. The four-firm concentration ratio is commonly used to indicate the degree to which an industry is oligopolistic and the extent of market control held by the four largest firms in the industry. How would you describe an industry with 20 firms and the CR is 20% and its implications?
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(2007). The effects of background music on the reading performance of taiwanese esl students. New York: Self Published. Retrieved from http://books.google.com/books?id=zVz_Lv9OnN0C&pg=PA33&lpg=PA33&dq=effects of background music on concentration&source=bl&ots=xRZ4pvia4r&sig=lzJhKQmZfw7WXV-WD1hyJhT9I4A&hl=en&sa=X&ei=I3otUeKHBo_o8gSBooHYAw&ved=0CH8Q6AEwCQ * Hallman‚ Price‚ Katsarou‚ S. J. G. (2002‚ November 2).The effects of background music on primary school
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In the book man searches for meaning part one “Experiences in a Concentration Camp” basically tries to explain the experience of the author in the various concentration camps. In the book‚ the author Frankl makes observations about the camp that is the three main phases a prisoner experiences each of which has its own symptoms. The first phase is the admission into the camp where it is categorized by the shock. The second phase is when the prisoners are fortified in the camp life‚ here they become
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think of music‚ the first thing that comes to mind is probably not Nazi Concentration Camps. Most people think death‚ brutal‚ and inhumane when they think of concentration camps. Music does not seem like it would play a big part in a place where millions were brutally murdered day in and day out. This is why music in concentration camps is considered paradoxical; in other words contradicting. The music was paradoxical in concentration camps because music helped prisoners remember who they are and what
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Belzec Concentration Camp: Belzec was an extermination camp located in Southeastern Poland on the Lubin-Lvov railway line (“Belzec Death Camp” par. 1). The camp was built on November 1st‚ 1941 by the Germans for the sole purpose of slaughtering minority groups (“Belzec Concentration Camp: History & Overview” par. 1). The Jewish Virtual Library estimates that between 500‚000-600‚000 Jews were incarcerated and killed at Belzec (par. 1). The mass murders were executed with carbon monoxide gas that
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