Depletion of Natural Resources - Oil DEPLETION OF ENERGY RESOURCES Modern industrial society is based on a triad of hydrocarbons‚ metals‚ and electricity. The three are intricately connected; each is accessible only if the other two are present. Electricity‚ for example‚ can be generated on a global scale only with hydrocarbons. The same dependence on hydrocarbons is true of metals; in fact the better types of ore are now becoming depleted‚ while those that remain can be processed only with modern
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NIKE‚ INC.: COST OF CAPITAL Book value vs. Market value While calculating the Nike’s cost of capital using both the book value (Exhibit 1.1) and the market value (Exhibit 1.2)‚ I could notice the mistake Cohen made finding the equity value. Cohen used the book value to reflect equity value. Although the book value is an accepted measure to estimate the debt value‚ the equity’s book value is an inaccurate measure of the value perceived by the shareholders. Since Nike is a publicly traded company
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Graduate School of Business Administration University Version 2.0 of Virginia UVA-F-1353 Version 2.0 Nike‚ Inc.: Cost of Capital On July 5‚ 2001‚ Kimi Ford‚ a portfolio manager at NorthPoint Group‚ a mutual fund management firm‚ pored over analyst write-ups of Nike‚ Inc.‚ the athletic shoe manufacturer. Nike’s share price had declined significantly from the start of the year. Kimi was considering buying some shares for the fund she managed‚ the NorthPoint Large-Cap Fund‚ which invested mostly in
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Implement the decision‚ evaluate performance‚ and learn An example of interdependencies include absenteeism/low employee morale and increased labour costs. 11‐2 Relevant costs are expected future costs that differ among the alternative courses of action being considered. Historical costs are irrelevant because they are past costs and‚ therefore‚ cannot differ among alternative future courses of action. 11‐3 Quantitative factors are outcomes that are measured in numerical
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The Cost of Capital 1 Background As investors desire to obtain the best/highest return on their investments in securities such as shares (Equity) and loans to companies such as debentures (Debt)‚ these returns are costs to the companies paying these Dividends (on equity) and Interest (on Debts)! It all depends on the perspective from which we chose to view the calculation (are we Earning or Paying?) Companies MUST consider the cost of financing they receive in the form of equity or debt if they
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Solutions to Chapter 12 The Cost of Capital 1. The yield to maturity for the bonds (since maturity is now 19 years) is the interest rate (r) that is the solution to the following equation: [$80 annuity factor(r‚ 19 years)] + [$1‚000/(1 + r)19] = $1‚050 Using a financial calculator‚ enter: n = 19‚ FV = 1000‚ PV = (-)1050‚ PMT = 90‚ and then compute i = 7.50% Therefore‚ the after-tax cost of debt is: 7.50% (1 – 0.35) = 4.88% 2. r = DIV/P0 = $4/$40 = 0.10 = 10% 3. = [0.3 7.50% (1
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Alternative energy resources What are Alternative energy resources?? It is any energy source that is an alternative to fossil fuel. It is a form of energy derived from a natural source‚ such as the sun‚ wind‚ tides‚ or waves and are also known as “Renewable Energy” that do not use up natural resources or harm the environment. They are considered alternatives because they can be future replacements for the fossil fuels that now meet a considerable portion of our energy needs. What Energy Resources
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Group Case 1: Ameritrade – Cost of Capital Executive Summary: As a deep-discount brokerage‚ Ameritrade planned to improve its competitive position by price cutting‚ technology enhancements‚ and increased advertising in mid-1997. Before initiating the plan‚ Ameritrade needed know whether the investment returned more than it cost. We were hired to estimate the cost of capital correctly. The key question is to find suitable comparable firms to estimate Ameritrade’s asset beta‚ since it was a recently-listed
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and Energy Worksheet Section 1 Work: 1. A person pulls a toboggan for a distance of 35.0m along the snow. The force in the rope (tension) is 94.0N. How much work is done on the sled? Solution: W= Fd W= 94.0N x 35.0m W= 3290 Nm or J 2. The cable of a large crane applies a force of 2.2x10^4N to a demolition ball as it lifts it vertically a distance of 7.6m. a) How much work is done on the ball? b) Is the work positive or negative? Why? Solution:
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------------------------------------------------- Mineral And Energy Resources ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Top of Form Almost all Earth Materials are used by humans for something. We require metals for making machines‚ sands and gravels for making roads and buildings‚ sand for making computer chips‚ limestone and gypsum
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