500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can 0.25 Other variable production costs per can 0.05 Costs to purchase cans - per can 0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1‚100‚000 cans per year $275‚000 Annual cost of direct labor for new employees: Wages
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extremely high amount of brand recognition. Some of this high brand equity may be attributed to consumer trust which spurs from Hertz’s stable financial history. Hertz has produced a pretax profit each year since 1967 and had 7.6% compound annual growth rate from 1985 to 2005‚ showing positive year over year growth in 18 of those 20 years. Moreover‚ the bidding group believed that an amount of
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year of the projects economic life‚ this will show how much the tax savings will be depreciated each year using the MACRS method 3) the projects incremental cash flows? This shows the company profit for each of the eight years. Net Cost MACRS Tax Rate Depreciation Tax Savings $ 212‚500 0.20 $ 42‚500 40% $ 17‚000 $ 212‚500 0.32 $ 68‚000 40% $ 27‚200 $ 212‚500 0.19 $ 40‚375 40% $ 16‚150 $ 212‚500 0.12 $ 25‚500 40%
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GENERAL MOTORS BLUE MACAW BRAZIL Plant X-Brazil Analysis Finance 570: Group Project Presented By: Abhijit Joshi‚ Kate Urpsirisuk‚ and Matthew Smith. Company Background Headquartered in Detroit‚ MI (NYSC: GM) CEOs – John F. Smith: Nov 1992 – May 2000 – Richard Wagoner: Jun 2000 – Present Founded in 1908 Annual global industry sales leader for 76 years Manufacturing facilities in 33 Countries Brazil’s Improving Economy Plano Real (1994) intended to stabilize Brazilian economy
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with the acquisition of the quota of majority of Crysler is found again of forehead‚ over that to a new market‚ also to a new coin with all those that can be the risks over how commercial also those financial. Nevertheless‚ right now‚ the exchange rate between these two currencies is 1 euro =1.3118 dollars so in order to make easier the case we will use 1.31 to round it up. The politics of the Group related to the management of the risk of change foresee‚ as a rule‚ the coverage of the future
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management process involves assessing what we are‚ what we want to become‚ and how we are going to get there. The major generic components of the process include the following: A. defining the mission of the organization B. analysis of the external and internal environments C. setting objectives D. formulating strategies to reach objectives E. implementing strategies through projects 2. Explain the role projects play in the strategic management process. Strategy is
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Chapter 2 -CAPM: how risk affects return -Expected Return (on investment): mean value of its probability distribution of returns; greater the probability return will be below expected‚ greater the stand-alone risk -Risk Averse: he/she must be compensated for holding risky assets -Asset has 2 risk types: Diversifiable risk can be eliminated by diversification; market risk cannot be eliminated -Market risk measured by standard deviation of returns on portfolio consisting of all stocks -Relevant
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case includes a completed financial forecast and an estimation of the internal rate of return for the equity investor. The student must assess the adequacy of the return and consider valuation insights based on peer firms and transactions. Exercise skills in credit analysis. The case gives ample information on projected performance‚ forecasted interest coverage‚ and credit rating standards. The student must assess whether the return to the lender is adequate in light of the assessed credit risks. Consider
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Subject: Palamon Capital Partners Details: I. Palamon Capital Partners/TeamSystem S.p.A. 1. What is private-equity investing? Who participates in it and why? How is Palamon positioned in the industry? 2. How does private-equity investing compare with public-market investing? What are the similarities and differences between the two? 3. Why is Palamon interested in TeamSystem? Does it fit with Palamon’s investment strategy? 4. How much is 51% of TeamSystem’s common equity worth? Use both
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(69/ Interest rate) 0.35 + (69/ Interest rate) 0.69 + (0.35/ Interest rate) 0.69 + (0.25 / Interest rate) None of the above 3. For a depositor‚ when the frequency of compounding is increased (a) (b) (c) (d) (e) Additional gains increase Additional gains dwindle Additional gains are unaffected There are no additional gains None of the above 4. Present value interest factor of a perpetuity represents (a) (b) (c) (d) (e) Interest rate in percentage terms Reciprocal of interest rate in percentage
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