Q1. Microsoft chose not to capitalize any software development cost and thus expensed them all as R&D. Assume that 60% of the reported R&D could have been capitalized and spread out over the following two years. For example. The amount of R&D capitalized into 1995 would be evenly spread out among 1996 and 1997. If this were the case how much would net income have been in 1997 and 1998? What would be the percentage increase in net income from 1997 t0 1998? Compare that to the actual reporting change
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WACC Weighted Average Cost of Capital Formula The WACC Weighted Average Cost of Capital formula is complex‚ and can be broken into several components. The individual component costs are provided in the following sections. WACC Weighted Average Cost of Capital Variables V=Firm Total Value (Debt + Preferred Shares + Common Equity + Retained Earnings) Md=Market Value of Debt Mp=Market Value of Preferred Shares Mc=Market Value of Common Equity Mr=Market Value of Retained Earnings K=Current
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Julie Conlon Ambit Energy December 18‚ 2011 Julie.Conlon@carestreamhealth.com 585.709-8948 The Federal Energy Agency started energy deregulation in the late 1980’s and early 1990’s‚ mostly because many local energy companies such as New York’s RG&E‚ had formed monopolies‚ they also felt that these companies were using outdated‚ inefficient generating plants. Consumers had no choice‚ and were forced to pay escalated energy costs based on solo area providers. It has
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Assignment 2: Business Financing and the Capital Structure Principles of Finance Finance 100 December 12‚ 2013 Business Financing and the Capital Structure Raising Business Capital As a financial advisor to this business there are two options to consider for raising business capital‚ equity financing and debt financing. The details‚ advantages‚ and disadvantages of both options will be provided. Also information about raising capital by selecting an investment
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1.) In this week’s case study‚ two companies were shown to enable smartphone utilization to increase profits. The companies were able to reduce time spent managing resources‚ reduce man-hours both traveling to work sites and performing the job function‚ and improve overall quality of work. These improvements increased profitability by costing the companies less in man-hours‚ allowing them to downsize positions‚ and increasing the quality of the work to better service customers. The improvements
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Business Financing and the Capital Structure Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash. As a business owner‚ it is important to know the value of your assets as they can be used as leverage for obtaining loans and can be used to estimate your ability to repay your
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Rev. July 3‚1985 Terry Brothers (A) Terry Brothers Terry Brothers manufactured and sold a broad line of toys and games including highly popular board games under such trademarks as "Monopoly‚" "Clue‚" and "Risk‚" children’s games such as "Peter Rabbit‚" and "Winnie the Pooh‚" and card games such as "Rook." In addition‚ Terry Brothers produced action games‚ "Nerf" toys and balls‚ electronic toys and strategy games for older children and adults. In 1978 Terry Brothers produced over 75 toy and game
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Apple Computer‚ 2006 Case Apple was started on April 1‚ 1976 by Steve Jobs and Steve Wozniak. It humble beginnings led to one of the largest and most successful corporations in history. Today‚ Apple is a powerhouse of computer technology‚ putting out some of the most innovative products in the last 15 years. Things weren’t always great for Apple and the company has gone through its share of lows; in 1997‚ Apple’s stock was a mere $7 a share. Apple has finally found a sustainable strategy and‚ I
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Scenario 1 Energy Inc. has a present obligation (IAS 37-17) and probable liability (ASC 450-20-25-2) on December 31‚ 2011 as a result of a past event‚ the contamination of the land‚ because it is virtually certain that a draft law requiring cleaning up will be enacted. It is probable (more likely than not) that Energy Inc. will be required to transfer economic benefits in settlement which is an outflow of resources embodying economic benefits in settlement (IAS 37-23). The amount of the obligation
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TORTS ASSIGNMENT DONALD TRESPASS TO LAND The sub-lease grants Alexis proprietary interests‚ hence she has exclusive possession‚ and locus standi for trespass to her bedroom and communal areas: Cowell v Rosehill Racecourse (1937) 56 CLR 605 ENTERING BEDROOM‚ PLACING PLANTS ON FLOOR Presumably‚ Donald intended (Nickells v Melbourne Corporation (1938) 59 CLR 219) the direct interferences (Southport Corp v Esso Petroleum Co Ltd [1954] 2 QB 182 (‘Southport’)) of entering Alexis’s bedroom and placing
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