1. How would you evaluate the capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal‚ a project finance framework was employed.” Usually‚ project finance framework is used when the project has predictable cash flows‚ which can easily represent operating targets through explicit contract. When cash flows are certainty‚ the company can have
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F523 - SPRING 2013 BOEING CASE 1. What is the appropriate required rate of return against which to evaluate the prospective IRR ’s from the B ANSWER:The appropriate rate of return against which to evaluate the IRR is the risk-free rate‚ plus the market risk 1a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case‚ the 74 over T-bonds. Which beta‚ risk-free rate‚ and risk premium did you use? Why? Financing Components Debt Equity Market Values Weight
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expectations throughout those countries. In Hong Kong‚ children’s birthdays had traditionally gone unrecognized‚ but McDonald’s introduced the practice of birthday parties in its restaurants‚ and now such parties have become popular among the public. Case 2: 1.
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An expense is normally incurred by a firm to generate sales‚ e.g. promotional expenses which are selling expenses which are directly related to the generation of sales. Most of the expenses normally form a part of operating expenses and are included in ‘cost of sales’. It may either be raw materials‚ labor‚ etc.‚ or capitalized assets which are either depreciated or amortized over a period of time. These are known as matching costs. The other types of costs are ‘period costs’ which are mostly mentioned
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Introduction Cooper Industries‚ Inc. is a manufacturer of heavy machinery and equipment. It has acquired some companies in the past as part of their expansion plans. Cooper acquires companies that are leading in their area of business‚ have a large market share and is the leading company in their area of operation. Currently‚ Cooper is focusing on building a hand tool business with a full product line that would use a common sales and distribution system and joint advertising. In this effort‚ Cooper
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MARKETING STRATEGY Ryanair case What is your assessment of Ryanair launch strategy? From my point of view‚ the strategy implemented by Ryanair was perfect because it is focused on capturing those passengers who have the price as the main criterion in choosing the mean of transport. There is a wide difference between the fare of the air companies with the ferry or rail giving rise to another variables‚ as comfort or no time‚ do not influence by the time of the decision-making. However‚ Ryanair
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• If Franchisees buy things from informal sources or the above confinement on wellsprings of supply is unenforceable‚ sovereignties are forced or (if eminences are as of now part of the framework) balanced upward significantly to compensate for lost income at the Franchisor/partner level. • If Franchisees don’t get deals/item buy shares‚ they can lose their regional rights‚ be ended and/or ineligible for reestablishment. • If you are uncomfortable with the working association with a Franchisee
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A study on Gold Monetization Scheme in India towards Government perspective - A tool to curb the market burden Mrs.M.Jyothi Prasad‚ Asst. Professor‚ MVSR Engineering College. Mrs.V.Latha‚ Ed the MVSR Engineering College. ABSTRACT Gold monetization scheme is an initiative towards enhanced financial investments in India. It is the first salvo as part of its plan to curb the market burden. In order to bring down market borrowings and to save interest upon‚ the government introduced the GMS intending
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Gulf Oil- suggested approach. Value the economic benefits associated with a decision to eliminate the exploration and development activities of the Gulf Oil Corporation. A key question is how Socal can justify a huge premium over market value to acquire Gulf. A key objective is to understand the shareholder value implications of a corporate strategy built around investing huge amounts of capital in activities that promise largely negative net present values. Place a specific value on Gulf’s
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1. What problems Colfax faces in this case? In the year 2008‚ all the heavy industrial manufacturers faced an important business development issue across the world‚ one of them was Colfax. The reason behind the issue was the rapidly rising thirst for oil from markets like Asia‚ Middle East‚ South America and other parts of the developing world to meet the increasing demands for energy and industrialized economies. This demand increased the pressure on oil extracting companies to hire vendors with
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