Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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exercise price. In this case‚ option B’s premium price is lower. The trade off is between a lower exercise price‚ higher premium price‚ option A‚ that better hedges against the yen if it were to appreciate in value (exercising the option) and a higher exercise price‚ lower priced premium that reduces cost if the hedge does not appreciate in value (the option is not exercised). 2.Should Blades allow its yen position to be unhedged? Describe the tradeoff. The case stated that “the futures
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KEEPING THINGS ORGANIZED AT BEN & JERRY’S SUMMARY: This case is on an ice cream parlor which is Ben & Jerry’s and it was started by Ben and Jerry in 1978 at a small gas station in Burlington Vermont. The initial goal of the company was to sell ice cream just for fun‚ but just within no time they became so much popular that now they were a $45 million dollars company. The main reason for this was its unique culture which they followed and which was not moving on alone but to move
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( Answers to Mini-Case Questions BioCom Inc. This mini-case provides a review of the methodology and rationale associated with the various capital budgeting evaluation methods such as payback period‚ discounted payback period‚ NPV‚ IRR‚ MIRR‚ and PI. 1. Compute the payback period for each project. |Time of Cash Flow |Nano Test Tubes |Microsurgery Kit | |Investment |−$11‚000.00 |−$11‚000.00
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Course: Organizational Development (MGMT 3022) Group Project: Ben and Jerry’s (A): Team Development Intervention THE UNIVERSITY OF THE WEST INDIES ST. AUGUSTINE‚ TRINIDAD AND TOBAGO‚ WEST INDIES FACULTY OF SOCIAL SCIENCES DEPARTMENT OF MANAGEMENT STUDIES MGMT 3022 – ORGANIZATIONAL DEVELOPMENT (EVENING UNIVERSITY) COURSE CODE: Mgmt. 3022 COURSE
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Cast Brian Smith – CIO John Johnson – CEO Stan Abrams – CFO Fred Tompkins – Head of Manufacturing (Most powerful executive lel) Harriet Simpson – VP of HR Brenda Barnes – VP of Marketing Ted Kwok – VP or R&D 1. What are the issues with current IT planning process? Budget given is equal to 2% of revenue Budget might fluctuate depending on actual revenue Budget for new infrastructure and initiatives/strategies are basically leftovers after the maintenance cost/keeping the lights on. As
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Ben & Jerry’s Case Analysis Give the history of the company in the case. In this history you should discuss how the company came into the situation presented in the case.? In 1977‚ two friends‚ Ben Cohen and Jerry Greenfield‚ decided they were tired of working for someone else and wanted to start their own business. They took a five dollar correspondence course on ice-cream making‚ rented an abandoned gas in Burlington‚ Vermont‚ and started their business with an investment of $12‚000 dollars
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Ben & Jerry’s Homemade ice cream Inc. Tutor’s Introduction This case study comes from the second edition of Business Strategy: an introduction published in 2001. It is very readable and interesting‚ providing students with insights into how two entrepreneurs who set up an ice cream shop in a renovated petrol station became the names behind one of the most well-known ice cream brands around the globe. Students will find out how Ben and Jerry tackled the almighty (at the time) Pillsbury and Häagen-Dazs
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In order to decide on an IPO price‚ we must look at the current financial position of the company‚ as well as make projections for possible future scenarios. From the data given‚ we know that Prairie Home Stores (PHS) has a current book value of $80‚000‚000. With 400‚000 outstanding shares‚ the book equity per share is $200. There are two possible paths for future performance to consider. The first‚ a constant growth scenario‚ assumes that PHS will continue on its current trajectory of paying
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Educator Insights: Ben & Jerry’s—Japan: Strategic Decision by an Emergent Global Marketer ABSTRACT Marketing students thrive on identifying an ideal foreign market for a product and devising a plan to launch and promote the product. As elegant as the plans may be‚ though‚ resources are constrained‚ and firms that are just emerging in the global marketplace may have a correspondingly constrained range of options available. The decision of Ben &’ ferry’s whether to enter the Japanese market—and
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