share (P0)? b. What is Gentry’s weighted average cost of capital (WACC)? c. Gentry can increase its debt by $8 million‚ to a total of $10 million‚ using the new debt to buy back and retire some of its shares at the current price. Its interest rate on debt will be 12 percent (it will have to call and refund the old debt)‚ and its cost of equity will rise from 15 percent to 17 percent. EBIT will remain constant. Should Gentry change its capital structure? d. If Gentry did not have to refund the
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CapitalBanc Corporation case 2.4 1- Management assertion is a set of information that the management provided it to the auditor‚ so the auditor will make sure there are no material misstatements. According to AU 326‚ paragraph 3‚ management assertions can be either explicit or implicit and can be classified according to three categories: Assertions about transactions‚ assertions about accounts balance‚ and assertions about presentation and disclosure. The auditor has to keep in mind that the
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The primary advantage of a corporate form of business is that a corporation is a stand-alone entity‚ which means you are not personally liable for the assets and debts of the business. Incorporating protects your personal assets from lawsuits‚ debt collection and other business issues that can arise. The stand-alone entity also separates tax liabilities‚ which is another advantage. This means that the corporation’s taxes are separate from your personal tax liabilities. As a business
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Case Study Case 1-4. X-Philes Data Management Corporation: RFP matters Question 1 We think that the future additional contract with another customer can cause an overload of workers who already have to work long hours and weekends completing Scully and Mulder projects. It can lead to decrease of quality of work and delays of projects completion‚ which in turn will be a reason of lost of the bonus and probable penalties in the work with Scully project. Question 2 The crisis facing Yrisket will
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Case study: Business Process Reengineering General Motors Corporation “General Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370‚000 employees by 1996. In the 1970’s‚ the automobile market for the major auto makers - General Motors (GM)‚ Ford‚ and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999‚ Ford acquired
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Company Research Assignment The reason for our research is to analyze the recruitment practices of a medium sized company. The subject of our assignment is Marriott Hotels – the Toronto airport location at 901 Dixon Road‚ Toronto. The Toronto Airport Marriott Hotel was a previous employer of Caroline Baird’s‚ who remembers this hotel as one of excellence with many good programs in place from hiring and recruiting to training and development. They are an example of a company
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Brief Outline This case is regarding Dell computers financial status in the period from 1991 to 1995. In this analysis we intend to highlight the various issues related to working capital experienced by the company. What makes this case interesting is the turnaround of Dell’s financial structure which in turn led to its recovery from seemingly major liquidity issues. To give a brief outline‚ this study enlightens one on how a fast growing company can get into trouble due to mismanagement of cash
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overConclusionbibliography | | Introduction A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization. The first multinational corporation was the Dutch East India Company‚ founded March 20
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along with the further clarification on the cost of capital using DCF approach. The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds‚ both debt and equity‚ or from an investors’ point of view‚ the shareholders required return on a portfolio of a company’s existing securities. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that
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MANAGEMENT ACCOUNTING AND CONTROL Answers: B.Campfire Outfitters Drivers Cost Centers Purchasing Cost 450 675.00 3‚600 72.00 75.00 1‚600.00 225.00 Engineering Cost 650 975.00 5‚200 104.00 125.00 3‚200.00 375.00 Backpacks Cost 800 1‚200.00 7‚200 144.00 250.00 700.00 125.00 661.75 1‚194.75 4‚275.50 625 6.84 875 6.20 Tents Cost 1‚100 1‚650.00 9‚900 198.00 200.00 700.00 75.00 926.45 1‚672.65 5‚422.10 1‚000 5.65 Sleeping Bags Cost 1‚000 1‚500.00 9‚100 182.00 150.00 750.00 100.00 1‚058.80 1‚911.60 5‚652
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