Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York‚ NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax operating income as a measure of the operating income on a firm and reduce it by the reinvestment rate to arrive at the free cash flow to the firm. Implicitly‚ we assume that the operating expenses do not include any financing expenses (such as interest expense on debt). While this assumption
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BUSAD 5120 – Decision Sciences Quiz #1 Instructions: Answer 33 questions on this quiz. That means skip 3 questions. If you answer more than 33 I will choose up to 3 random numbers and will disregard those questions so only 33 will remain to be graded. All questions are worth the same point value (3 points each). Email me your completed quiz no later than Sunday‚ Nov 2nd. Chapter 1: TRUE/FALSE (1-9) 1) Management science involves the philosophy of approaching a problem in a subjective manner
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Week 4 Practice Quiz 1. Budgeting is the common accounting tool companies use for planning and controlling. Budgets a. provide a measure of planned financial results. b. focus managers’ energies on exploiting opportunities. c. help managers anticipate potential problems. d. enable managers to control through a set of specific activities with defined corrective actions. 2. [AICPA Adapted] Dewitt Co. budgeted its activity for October 2004 from the following information:
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/ 220802 | Troubleshooting" and 7 others" and 1 other flashcards | Quizlet You have connected two drives to the primary IDE interface in a PC system. How could the drives be configures? (select two) 1) Set both drives to Cable Select You have a desktop computer that uses a 250 Watt power supply. You recently added a 4disk RAID10 array to the system and now it spontaneously shuts down. What should you do? Upgrade to a power supply that provides more watts You are responsible for managing the
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Quiz 1 1. Sociologists study information systems with an eye to understanding: a. how systems affect individuals‚ groups‚ and organizations. b. how human decision makers perceive and use formal information. c. how new information systems change the control and cost structures within the firm. d. the production of digital goods. 2. From a business perspective‚ raw data is transformed systematically during various stages‚ transforming it into valuable information‚ in a process called:
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CHAPTER 1 Key Term Quiz 1. _______________ is any combination of text‚ graphic art‚ sound‚ animation‚ and video delivered to you by computer or other electronic means. 2. _______________ allows an end user to control what and when the elements are delivered. 3. _______________ is a structure of linked elements through which the user can navigate. 4. A _______________ multimedia project allows users to sit back and watch it just as they do a movie or the television. 5. _______________ tools
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• Question 1 Short-term objectives __________ long-term objectives. Correct Answer: operationalize Response Feedback: p. 288 • Question 2 Enhanced bargaining power with distributors and retailers to gain shelf space‚ shelf positioning‚ stronger push‚ more dealer attention and better profit margins represents which of the following sources of value building in multi-business companies? Correct Answer: Potential competitive advantage Response Feedback:
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Operating Leverage Operating leverage can be measured if the breakdown of fixed cost and variable cost in a company’s operating structure is known. Operating leverage is normally based upon operating income to avoid muddying the signal with financial leverage or taxes. Computing operating leverage would be easy if the proportion of fixed and variable costs could be known with certainty. Consider a stylized example: Operating leverage is computed by dividing the contribution margin (revenues
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Pension Plans and Operating Segments Pension Plans and Operating Segments Memorandum To: CEO From: Controller Re: Pension plans and operating segments for newly acquired company The intent of this memo is to answer questions regarding the pension plans and operating segments of the company we recently acquired with 100% ownership. This company has two operating segments‚ each with its own pension plan. Reporting requirements for these issues are explained below. Pension
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BUS 335 WK 2 Quiz 1 Chapter 1 Purchase this tutorial here: http://xondow.com/BUS-335-WK-2-Quiz-1-Chapter-1-BUS3351.htm True / False Questions 1. Human capital refers to the knowledge‚ skill‚ and ability of people and their motivation to use them successfully on the job. True False 2. For the average organization‚ employee costs (wages or salaries and benefits) are under 10% of its total revenue. True False 3. Staffing is the process of acquiring‚ deploying‚ and retaining a workforce
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