1. Joy‚ who has completed his first finance course‚ is unsure whether he should take a course in business analysis and valuation using financial statements since he believes that financial analysis adds little value‚ given the efficiency of capital markets. Explain to Joy when financial analysis can add value‚ even if capital markets are efficient. 2. In 2005‚ Puma was a very profitable sportswear company. Puma did not produce most of the shoes‚ apparel and accessories that it sold. Instead
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ECN372 Corporate Finance 2‚ 2012/2013 Problem Set 5: Solutions 1. a) The face value of debt is given by: 0.5 × F + 0.5 × 40 = 60 ⇒ F = 80 The value of the firm is: V = 0.5 × 150 + 0.5 × 40 = 95 The value of equity is: E = 95 − 60 = 35 b) The value of debt: D = 0.5 × 50 + 0.5 × (20 − 10) = 30 The value of the firm is: V = 0.5 × 70 + 0.5 × (20 − 10) = 40 The value of equity is: E = 40 − 30 = 10 c) If the firms were to merge then: The value of debt: D = 0.5 × (80 + 50) + 0.5 × (40 + 70
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not feel obligated to use plus sized models in their campaigns. Do you agree? Women these days are constantly bombarded with advertisements and campaigns telling them what they should wear‚ what they should eat and how they should portray themselves. It has become a race to try and achieve a size zero look because women feel as if it has become the new norm. That is why‚ I believe the fashion industry should be obliged to use plus size model. A plus size model is a model who is a US size 8 or
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In a world where non-linearity and randomness are the norm‚ the capital asset pricing model (CAPM) is widely accepted despite it being a linear model‚ and this is probably due to the simplicity of the model and its pre-computer age birth (see equation below). A well recognized and utilized metric in finance is beta (β)‚ which is the slope in the linear CAPM. To derive β one simply plots the returns (capital gains plus dividend yields) of an individual stock (y-axis) against the returns of a well
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enables the business to earn more than just sufficient profits which induces the entrepreneurs to remain in action all the times. Valuation of goodwill: Cost method It is the value which a rational buyer would pay for the business as a going concern less the value of net assets(assets-liabilities) taken over by the buyer. Cost of goodwill purchased=purchase price-net assets purchased Super profits method Super profits =Average profits –normal profits (1) No of years purchase method:
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How to find a job?- some advice for the unemployed. The first step in finding a job is to write a resume or prepare to complete a job application. Depending on the type of job you are searching for‚ you will need a resume‚ CV (curriculum vitae) and a cover letter or you will need to complete an application for employment. In most cases‚ you will need a resume to apply for full-time‚ professional job opportunities. If you are seeking a part-time job or work in a career field like hospitality or
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University of waikato Company Valuation Report Alice Luo Wendy Ruan Emily Xie Constance Yan Date – 14/09/2014 Contents 1.0 Introduction…………………………………………………………………………………………….. .1 2.0 Literature Review………………………………………………………………………………………..1 2.1 Asset Size……………………………………………………………………………………………..1 2.2 Total Operating Income........................................................................................................................2 2.3 Impaired asset expense as % of average
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PRIVATE EQUITY – A VIABLE ALTERNATIVE SOURCE OF FUNDING FOR GHANAIAN SMEs By Joseph Ciici Arthur Ghana’s workforce is predominantly employed by the informal sector. This sector of our economy is largely made up of Small and Medium scale Enterprises (SMEs) and sole proprietorships (“one man business”). This is confirmed by available data from the Registrar General which indicates that 90% of companies registered in Ghana are SMEs. Over time‚ this target group has been identified as the catalyst for
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* What is a business model explain it with an example and a comparison? A plan for the successful operation of a business‚ identifying sources of revenue‚ the intended customer base‚ products‚ and details of financing. * What is an Airline? an organization providing a regular public service of air transport on one or more routes. * What is an Airport? a complex of runways and buildings for the take-off‚ landing‚ and maintenance of civil aircraft‚ with facilities for passengers. * Past and the future
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Ilit Raz EMBA – Dickens Cohort Jan 2013 Company Valuation - Elbit Systems Ltd. The following document will try to describe the financial assets and the portfolio of “Elbit Systems” and a company valuation. As part of my military service I spend some time in different project in Elbit Systems‚ working with their R&D department. For the company valuation I’ll use Discount Cash Flow (DCF) method. After valuating the company I’ll calculate the discount premium
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