Alternative Financing Plans A. Short-term interest exp. (400‚000 + ½ (300‚000)) 5% = (550‚000) 5% = 27‚500 Long-term interest exp. (400‚000 + ½ (300‚000)) 10% = (550‚000) 10% = 55‚000 27‚500 + 55‚000 = 82‚500 Earnings before interest and taxes = 200‚000 Interest expenses = 82‚500 Earnings before taxes = 200‚000 – 82‚500 = 117‚500 Taxes = 117‚500 X 34% = 39‚950 Earnings after interest and taxes = 200‚000 – 82‚500 – 39‚950 = 77‚550 B. Short-term interest exp. ( ½ (400‚000)) 5% = (200
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Ethics and Compliance Paper FIN/370 Starbucks Coffee Company “To inspire and nurture the human spirit – one person‚ one cup and one neighborhood at a time ("Starbucks"‚ 2012).” Starbucks mission is to not only provide the highest quality of coffee but also make a positive impact on the world. Ethisphere Institute over the last six years has selected the World’s Most Ethical Companies and Starbucks has made the list every year. What are the key components that make Starbucks one of the most ethical
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Case Study – Banning of Shark fin soup in Jade Restaurant. The refusal of not banning shark fin soup at Jade Restaurant can affect many stakeholders. This includes the owner/shareholder‚ suppliers‚ special interest groups (SIGS)‚ customers‚ and also the government. The owners and shareholders are definitely going to be affected because if the ban were to go through they would lost a portion of the profit that they would’ve earned if it weren’t for the ban. The suppliers are obviously going to be
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FI515 Week 4 Homework P7-2 Chapter 7 Constant Growth Valuation 7–2) Dividend Expected Growth Rate Required ROR stock (rs) 1.50/(.07-.15)= Stock price Price = Dividend / (Required Return - Growth Rate) P7-4 $1.50 7% 15% Constant Growth Valuation Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e.‚ D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock
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Working Capital Simulation Aljenette Brown FIN 571 December 14‚ 2014 Susanne Elliott This paper will analyze the Sunflower Nutraceuticals (SNC) and the decisions their company can make to increase working capital and maximize the organization’s growth potential. Moreover‚ this paper will examine some of the decisions made in each phase of SNC’s simulation‚ describe how SNC’s decisions affected their working capital‚ and evaluate the general effects associated with limited access to financing.
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Fin/370 I Defining Financial Terms: Finance- The study of how people and businesses evaluate investments and raise capital to fund them and it help organizations to study every decision they make from investing in a product to market short term or long term * Efficient market- A market in which all the available information is fully incorporated into securities prices and the returns investors will earn on their investments cannot be predicted. In this type of market no insider trading
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Guillermo Furniture Store Concepts FIN/571 October 31‚ 2011 Guillermo Furniture Store Concepts This assignment sets out to explain the pertinent financial concepts and principles found in chapters two and three of the text Corporate Financial Management by (Emery‚ Finnerty‚ & Stowe‚ 2007) and how they relate to the context of the Guillermo’s Furniture Store scenario. Guillermo’s was a leading furniture
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This document of FIN 571 Study Guide 571 Final includes answers to the next questions: 1) Which of the following statements is true? A. A security is a claim issued by a firm that pays owners interest‚ not dividends B. A call option analyzes conflicts of interest and behavior in a principal-agent relationship C. An agent-manager can never make bad decisions D. The difference between the value of one action and the value of the best alternative is called an opportunity cost
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This work of FIN 403 Week 2 Learning Team Assignment Investment Decision Selection Paper comprises: FIN 403 Week 3 Blades Case Study Analysis Business - Finance Select one of the following scenarios‚ used in future Learning Team assignments: A manufacturing organization considering expansion to India or Brazil A service organization considering expansion to Thailand or Ghana A nonprofit organization considering expansion to China or Hungary Obtain faculty approval
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Ethics and Compliance FIN/370 Dec/14/2011 Ethics and Compliance “The mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content‚ services and consumer products‚ we seek to develop the most creative‚ innovative and profitable entertainment experiences and related products in the world” (According to "Walt Disney Company Mission Statement" (2011) Walt Disney began
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