CHAPTER 11: THE COST OF CAPITAL LEARNING GOALS: 1. Understand the key assumptions‚ the basic concept and the specific sources of capital associated with the cost of capital. 2. Determine the cost of long-term debt and the cost of preferred stock. 3. Calculate the cost of common stock equity and convert it into the cost of retained earnings and the cost of new issues of common stock. 4. Calculate the weighted average cost of capital (WACC) and discuss alternative weighing schemes
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Capital Project “A capital expenditure is a commitment of resources that is expected to provide benefits during a reasonably long period‚ at least two or more years” (Cleverly & Cameron‚ 2007‚ p. 397). Sometimes it can be difficult to determine the difference between a capital expenditure and a routine expense. A capital expenditure improves the value of the asset‚ whereas a routine expense is used for maintenance of that asset. For example‚ installation of a new bathroom in a
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In this period of time American territorial expansion was at an all time high; consequently‚ expansion encouraged economic growth and a more industrial society. This was good and bad for the people that lived within the nation’s boarders. The expansion drastically increased the amount of opportunities for the nation’s people to be successful. On the other hand‚ one was only allowed to take advantage of these opportunities if one fitted the racial requirements. Ultimately‚ each racial group faced
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The Westward Expansion took action in the late 1800’s. Many settlers were moving into the west and away from the south. This had a huge impact on Native Americans and the United States settlers including many conflicts and judgemental thoughts. This also impacted the way they continued to live the rest of their lives. The western territory settled when the Homestead Act took place. The United States government was giving away land to settlers who met requirements. The government plan was that‚
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CAPITAL GAINS According to income tax act 1961 ‘capital gains’ is the fourth head of income. Any profit or gains arising from the transfer of capital assets during the P.Y. shall be chargeable to income tax under the head capital gains and shall be deemed to be the income of P.Y. in which the transfer took place. Thus from a plain reading – Profits or gains earned on the sale of capital assets by an assessee during the P.Y. is called as capital gains. Meaning of Capital Asset: Capital asset means
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role. The manifest destiny of the country was to expand and grow as much as possible to provide ample space for the millions of people to come (Tindall & Shi‚ 2013). This growth and expansion increased opportunities for economic development including manufacturing and exportation of products. Once the expansion reached the Pacific Ocean and the borders were defined with Mexico and Canada‚ the only
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GLOBALIZING THE COST OF CAPITAL AND CAPITAL BUDGETING AT AES 1. How would you evaluate the capital budgeting method used historically by AES? 2. If you implemented the methodology suggested by Venerus‚ what would be the range of discount rates one would use around the world? 3. Does this make sense as a way to do capital budgeting? 4. How big a value difference does this new approach make to the Pakistan project? 5. How do these cost of capital modifications translate into changed probabilities
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Yuta Ogawa Segal‚ Samantha US History I Honors May 17‚ 2010 Westward Expansion DBQ Manifest Destiny was the belief that the United States of America had the destiny of expanding across North America from the Atlantic to the Pacific Ocean. This terms meaning has changed and been misused over the years. It was used as a justification for the Mexican War‚ and eventually was led to believe that it was to expand slavery. The main purpose of Manifest Destiny was not to expand the institution of slavery
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The free people‚ even in that time‚ traveled west for free land and to escape politics and war. This is extremely similar to Westward Expansion because many who went west during that time did so because of free land available. Also‚ along with west settlers‚ the white people that took over part of the land‚ the British and the French‚ in this movie were strong Sectionalists. They put the
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The Westward Expansion was the acquisition of land out west from the Atlantic Ocean to the Pacific Ocean. During this expansion many changes occurred‚ some good and some bad. The changes could be grouped into three different categories‚ social‚ political‚ and economic. During westward expansion new changes‚ inventions‚ and ideas were quite common. One of these ideas was the telegraph wire. This wire allowed for people to communicate from far away places. During this time Manifest Destiny (The belief
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