is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC’s value of operations. (13-3) Horizon Value Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2012‚ and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2012? | Actual | Projected | | 2010 | 2011 | 2012 | 2013 | | Free cash flow (millions of dollars) | $606
Premium Free cash flow Generally Accepted Accounting Principles Weighted average cost of capital
to an investment horizon[1]. – Investment horizon According to the cost-of-capital calculation methodology used by Marriott Corporation‚ lodging division was treated as long-term‚ while restaurant and contract services divisions were treated as short-term because those assets had shorter useful lives. – Expected return proxy Arithmetic average return is more suitable than geometric mean as it is better in estimating an investment’s expected return over a future horizon based on its past
Premium Arithmetic mean Weighted average cost of capital Average
PHII‚IPPE JORION* ABSTRACT This paper reexamines the ability of dividend yields to predict long-horizon stock returns. We use the bootstrap methodology‚ as well as simulations‚ to examine the distribution of test statistics under the null hypothesis of no forecasting ability. These experiments are constructed so as to maintain the dynamics of regressions with lagged dependent variables over long horizons. We find that the empirically observed statistics are well within the 95% bounds of their simulated
Premium Dividend yield Regression analysis Statistics
intended to shut off the flow of high-pressure oil and gas from the well‚ but failed to seal the well because the drill pipe buckled for reasons that are still unknown. The crew could have redirected the flow of the mud and gas away from Deepwater Horizon and into the gulf‚ but instead they directed it to a separator device that was designed to separate gas from a mudflow similar to what was happening but in much smaller quantities. The separator got overwhelmed and flammable gas began to flood the
Premium Petroleum Oil spill Valve
Janie realizes that when she was young‚ Nanny had “pinched [the horizon] in to such a little bit of a thing that she could tie it about her granddaughter’s neck tight enough to choke her” (Hurston 89). Some consider the “horizon” as “the biggest thing God ever made”; here‚ Hurston uses the “horizon” to denote an individual’s future‚ which could be described in the same important manner (Hurston 89). However‚ by arranging Janie’s
Premium Zora Neale Hurston Fiction Their Eyes Were Watching God
human-caused disaster in the United States history until twenty-one years later when The Deepwater Horizon occurred on April 20‚ 2010. Both disasters had a deadly effect on environmental life. These two incidents linked individuals taking shortcuts and being overconfident. Catastrophes do not happen by accident; something has to trigger them. Three main reasons why the disaster at Deepwater Horizon occurred: judgmental heuristics‚ satisficing and overconfident. Judgmental heuristics signifies taking
Premium Petroleum Oil spill Exxon Valdez oil spill
Scene on the beach The Beautiful Sunset over the Beach An orange haze casted over the moving sea‚ reflecting on every wave. Half of a glowing‚ radiant light loomed on the water’s horizon. A warm sensation was splashed onto my face from the beaming rays of the sun. Calmness flew by with the wind making my heart stop for a single second. You could hear the palm trees rustling behind me as if they were whispering to one another to hush. Dolphins leaped and sang at the golden sunlight before them
Free Sun Light
CHAPTER 26 MERGERS‚ LBOs‚ DIVESTITURES‚ AND HOLDING COMPANIES Please see the preface for information on the AACSB letter indicators (F‚ M‚ etc.) on the subject lines. True/False Easy: (26.1) Synergistic merger FU Answer: a EASY 1. In a merger with true synergies‚ the post-merger value exceeds the sum of the separate companies’ pre-merger values. a. True b. False (26.1) Sources of synergy FU Answer: a EASY 2. Synergistic benefits can arise from a number of different
Premium Net present value Free cash flow Cash flow
Soils of the tropical savannas The soils of the tropical savannas‚ along with the distinctive wet/dry climate‚ are a major determinant of vegetation in the region‚ and of potential land uses. Soil is an outcome of five broad factors: parent material‚ climate‚ relief/slope‚ time and organisms. | Infertile soils Given the variations in all of these in the savannas it is no surprise that there are many different soil types in evidence in northern Australia. Generally speaking the combination of these
Premium Soil
the Gulf of Mexico‚ and it is the largest lease holder in the United States with more than 650 lease blocks in waters greater than 1‚250 feet. Unfortunately‚ BP had the record of the biggest oil spill in the area. On April 20‚ 2010‚ the Deepwater Horizon rig operating in the Gulf of Mexico experienced a well blowout which sank the platform and resulted in the release of oil into the Gulf‚ a great catastrophe for the environment that the company and the world will not forget. In this paper‚ we are
Premium Petroleum United States Oil spill