common stock =60‚000‚000/2‚500‚000 =$24 per share b) P/E ratio = price / earnings = 40/6.25 = 6.4 times c) 1) current required return = Rf + β (Rm – Rf ) = 6% +1.1(8.8 - 6) =9.08% Note: beta is assumed as there is no information of beta in the case study. 2) New required return = Rf + β (Rm - Rf ) = 6% + 1.1 (10-6.6) = 9.74% d) Ke =D1+ G Po 9.74 % = 4 x100+ 0 Po Po = $41.07 e) 1)Ke=D1+ G Po 9.74 % = 4.24 x100+ 6% Po Po= $113.37 2) Po = D1
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Foxconn is one of the manufacturer in Apple Inc. that is in charge of manufacturing electronics products. For instance‚ iPhones and iPads. Unfortunately‚ many employees committed suicide by jumping from buildings in 2010. Besides‚ there are lots of factors lead to many employees committed suicide. For example‚ poor working environment‚ low salary‚ work overtime‚ etc. This issue damaged the reputation of Apple Inc. directly. As a result‚ Foxconn and Apple Inc. make a different responses and solutions
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CORE STRATEGIES Fashion Walker Inc. is a international fashion dominator which mean our company distribute different company’s products and selling online for them. Our company is a online shopping mall and selling about 500 products in different brand. For the core strategies here‚ although our company is invisible but we have our own strength to attract customer. For our ’invisible’ company‚ we have four core strategies. 1. Consumer own account. If customer want to buy something in our company
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Case : Audio Duplication Service‚ Inc. 1. Why are ADS ’s customer ’s moving toward VMI arrangements ? Record companies are adopting VMI agreements because the national retailers are pressuring them to manage their own supply of cds ‚ tapes and other products . This would be more cost efficient for the retailers and in return the companies will have more access to the monitoring of the point of sales which would also be beneficial to the company . 2. How will this impact ADS ’s business
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Polar Sports‚ Inc. Fall 2014 BA 615 Polar Sports Question 1 1. Which factors should Mr. Weir consider in deciding whether to adopt level production? Mr. Weir must analyze both business and financial risks of adopting level production. As a for profit firm‚ the first thing that Mr. Weir should consider is whether level production will increase net income and provide more value for the shareholders. The pro forma statements show that Polar Sports will be more profitable. Polar Sports will make $406
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Case 1.8 Crazy Eddie‚ Inc. Case Summary: At age of 16‚ in 1978‚ Eddie Antar opened Crazy Eddie Inc in New York City. This was an electronics store where leadership positions were assumed by family and relatives. Their excellent advertising techniques through radio and their cut rate prices allowed the company to become “transhipper”‚ selling goods to other electronic retailers in NYC area. Crazy Eddie Inc went public in 1986 in order to finance expansion program and in that year‚ it was
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Problem Identification Established in the early 70’s Nike‚ Inc.‚ based in Beaverton‚ Oregon‚ USA faced a severe stream of criticism and experienced growing problems concerning their plants and employee treatment‚ mainly in Indonesia and Vietnam in 1988. Rising demand for Nike products‚ which almost doubled within a short period of time‚ led the company and its 350+ subcontractors to raise the production level. Series of labor problems and abuse such as cheap labor wages‚ poor working conditions
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In the Corn Products Refining Co. case‚ the company had purchased corn futures in order to ensure that the corn needed for operations could be obtained in times of shortage or raising prices‚ without the need to worry about storage capacity limitations. The company reported the gain or loss on the futures as ordinary income and losses in 1940 and 1942‚ however the company later argued that the futures should be classified as a capital asset‚ subjecting the gain and losses incurred to Section 117
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changes in DJIA and DJUSTC could be estimated by market moving economic indicators (e.g. updates of GDP‚ Jobless claims‚ Consumer confidence index‚ etc.)‚ this analysis will help an individual investor to identify patterns and trends that may suggest the daily price change of the AAPL stock. DATA DESCRIPTION: The data used in this analysis is a time series data of the daily stock/index price starting from February 1st‚ 2013 to May 24th‚ 2013 (accessed 5-27-2013 from www.finance.yahoo.com). The three
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Tiffany Hale AC503-02 Unit 2 Case Study North Face Inc. Case Study 1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. When it comes to immaterial effect on a set of financial statements I would say that clients should not accept all proposed audit adjustments. By clients not accepting all proposed audit adjustments‚ auditors are
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