The Open Polytechnic of New Zealand Trimester 1‚ 2012 71303 Corporate Finance Final Examination Time allowed Three hours‚ plus 10 minutes to read this paper. Instructions 1. 2. 3. 4. Answer all questions. Read each question carefully. Start each question on a new page. Show all of your workings. Mark allocation Question Part A Part B 1. 2. 3. 4. 5. Cost of capital Risk and return Investment timing real option Capital structure Dividend policy 14 12 15 20 15 Total 100 Topic Multiple-choice
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Average Cost of Capital (WACC) as the hurdle rate. The investment projects in our company are selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. As the vice president of project financeof Marriott Corporation‚ I am conducting an analysis of our company (Marriott Corporation) for calculating the hurdle rates at each of our firm’s three divisions: lodging‚ restaurant and contract services. I use Weighted Average Cost of Capital (WACC) as the hurdle rate
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ratio of accounting numbers‚ so it is sensitive to the methods used * No guidance on the target level of ARR -------------------------------- PAYBACK PERIOD (PBP): How long does it take to get the initial investment back in a nominal sense? Pros: * Simple to apply and easy to understand * Provides information on how long funds are committed to a project (measures risk‚ liquidity) Cons: * Time value of money is ignored (no discounting) * Risk is not taken into account *
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crusher machine for mining process. And with the development of mining machinery industry‚ there are many kinds of mining machines in the market‚ such as China jaw crusher‚ combination crusher and sand making machinery and so on. but do you know how to calculate the production capacity of crushing equipmet? If you have not ever heard of it‚ today our expert of HXJQ will talk something about it. I think you can read this article with your a little time. The choice of crushing equipment: Gold mine concentrator
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How to Write a Corporate Style Guide Abstract A corporate style guide‚ in the form of a booklet‚ is primarily used as a standard reference tool in corporate communications. Its importance is significant because it sets the quality and the tone needed by a corporation. In addition‚ it produces consistency in documents and documents generation; it creates good corporate image; and provides employees with trainings on the various standards. In developing a corporate style guide it is imperative
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Corporate finance P. Frantz‚ R. Payne‚ J. Favilukis FN3092‚ 2790092 2011 Undergraduate study in Economics‚ Management‚ Finance and the Social Sciences This subject guide is for a Level 3 course (also known as a ‘300 course’) offered as part of the University of London International Programmes in Economics‚ Management‚ Finance and the Social Sciences. This is equivalent to Level 6 within the Framework for Higher Education Qualifications in England‚ Wales and Northern Ireland (FHEQ). For more
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Corporate finance: Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm’s financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms‚ rather than corporations alone‚ the main concepts in the study of corporate finance
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owners: shareholders cannot be held personally responsible for the corporations’ debts; they only stand to lose their investment. To incorporate‚ you work with a lawyer to prepare articles of incorporation‚ which set out the purpose of the business and how it is to be financed‚ managed‚ and governed. You may incorporate your firm federally under the Canadian Business Corporation Act‚ or provincially‚ under the relevant provincial laws. The corporation is considered a resident of its jurisdiction.
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Solutions Manual Fundamentals of Corporate Finance 9th edition Ross‚ Westerfield‚ and Jordan Updated 12-20-2008 CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review and Critical Thinking Questions 1. Capital budgeting (deciding whether to expand a manufacturing plant)‚ capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt)‚ and working capital management (modifying the firm’s credit collection policy with its customers). Disadvantages:
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Theorem in the absence of corporate taxes‚ an increase in leverage (i.e.‚ an increase in D/E ratio) will lead to a) Higher cost of equity b) Low cost of equity c) No change in cost of equity d) The information provided is not sufficient to chose any of the above questions Ans: A 2) According to M&M Theorem in the absence of corporate taxes‚ an increase in leverage (i.e.‚ an increase in D/E ratio) will lead to a) Higher WACC b) Low WACC c) No change in WACC d) The information provided
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