Q1. What are the goals of financial management? Ans. Financial management means maximization of economic welfare of its shareholders. Maximization of economic welfare means maximization of wealth of its shareholders. Shareholder’s wealth maximization is reflected in the market value of the firm’s shares. Experts believe that‚ the goal of financial management is attained when it maximizes the market value of shares. There are two versions of the goals of financial management of the firm- Profit
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Engineer Mobile Network Operations Unit Kj-miyahara@cw.jp.nec.com 1 Mobile Evolution 1992 2002 Video Calls 2005 Media Clips 2008 Mobile Triple Play/ Gaming 2013 Personalised Localised Services Services Voice SMS MMS Mobile TV Technology GSM GPRS UMTS HSDPA HSUPA LTE HSPA+ MBMS OFDM IMS IP transp. access 4G User Expectations Voice and Text Download Real time delivery Interactive Information Swapping Anywhere Anytime Anyhow
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HINDUSTAN UNILEVER LTD: THE WHEEL SAGA MM I INDIVIDUAL ASSIGNMENT Name: Ushasi Kundu Course: PGDM (2011-13) Section: B Roll No.: 11DM-192 Q1. Based on the case study above‚ critically examine HUL’s Marketing strategy (STP) for Wheel since its inception and the reasons for the success of the brand. Answer: In 1987‚ HUL launched its very famous product Wheel detergent. The Strategies followed by HUL to reach a point of success with the brand were: A. Innovative Segmenting Strategies
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Final Exam Practice Problems 1. Firm ABC’s only outstanding debt is $100‚000 worth of coupon bond (market value). Its yield to maturity is 8%. Given that its tax rate is 40%‚ what is its effective cost of debt? Effective cost of debt = cost of debt * (1-tax rate) =8%*(1-40%)=4.8% 2. Firm ABC has a stock currently traded at $20. The next year’s dividend will be $0.20. The dividend growth rate is forecasted to be 6% forever. Risk-free rate is 3%‚ and market risk premium is 4%. Assume that Constant
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TMA 1 – BMK501-Marketing Management Case Study Analysis I. EXECUTIVE SUMMARY The shift in consumers’ behavior and attitudes today is attributed to a number of important global developments. Chief amongst those are the changing demographics as we head towards an increasingly aging population while at the same time we are witnessing the rise of a new consumer group - the “Generation Y” or the Millennials that threaten to dictate the new rules in buying and doing business. Notably too
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Hindustan Unilever Ltd: The Wheel Saga MM I Individual Assignment 1. Based on the case study above‚ critically examine HUL’s Marketing strategy (STP) for Wheel since its inception and the reasons for the success of the brand. The core reason of the introduction of the “Wheel” brand from the Hindustan Unilever Pvt. Ltd. (HUL) was to damage control the loss of market share due to the short-sightedness and the complacent attitude of the senior level managers to the potential of low income
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with American Express (AMEX)‚ DJS launched the David Jones American Express (DJA) card in 2008 (ASX Media Release‚ 20 February 2008). To effectively analyse the value proposition of this SBU and product it is important to first examine the overall value proposition of the company. As defined by Kotler‚ a company’s value proposition is the set of benefits which it promises to deliver to consumers in order to satisfy their needs (Kotler et al. 2009). In the case of DJS these core benefits are the
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Contents Executive Summary 1 Introduction 2 Theories of Accounting 2 Public Interest Theory 2 Private Interest Theory 2 Regulatory Capture Theory 3 Is accounting Needed (GPFR)? 3 What does the financial department (accounts) do? 3 Why public disclosure became so serious? 4 Principal Agent Outlook 4 Agency Cost- Critical Reason for accounting frauds 6 Three Essential Accounting Areas 7 Capital Budgeting 7 Investments 9 Capital Structure 11 Trade off theory 12 Conclusion
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risk-free interest rate. What are the cash flows of the levered equity‚ and what is its initial value according to MM? E ⎡C (1)⎤ = ⎣ ⎦ 1 (130‚ 000 + 180‚ 000) = 155‚ 000‚ 2 155‚ 000 NPV = − 100‚ 000 = 129‚167 − 100‚ 000 = $29‚167 1.20 155‚ 000 = 129‚167 1.20 b. c. Equity value = PV ( C (1)) = Debt payments = 100‚ 000‚ equity receives 20‚000 or 70‚000. Initial value‚ by MM‚ is 129‚167 − 100‚ 000 = $29‚167 . 14-2. You are an entrepreneur starting a biotechnology firm. If your research
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• Cash management (organization of the payments flow) Theory Capital Structure 2 8/30/2013 Long term financing: the capital structure • • • • • • • • Neoclassic theory proposition Modigliani & Miller‚ MM1 proposition Modigliani & Miller‚ MM2 “anomaly”: Tax (MM + corporate tax) “anomaly”: Income Tax (MM + all tax) “view I”: Insolvency costs (Static Trade off theory) “view II” A “ i II”: Agency costs t “view III”: Pecking order theory Neo-classical finance theory • A company is regarded
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