calculations (risk-free rate‚ equity market risk premium (EMRP)‚ beta). Is Midland’s choice of EMRP appropriate? If not‚ what recommendations would you make and why? Midland’s corporate WACC is 9.17%. Please see exhibit 1 for supporting calculations. The risk-free rate for 2006 came from the Department of Treasury’s website‚ which we added to Midland’s 2006 Equity Market Risk Premium of 5% (pg.6). We used the 10-year rate to approximate the duration of a corporate investment. Equity and debt are derived
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selling the Machine-Tech division. This sparks up interest to the users as to find out the reason behind it. It currently has a debt-to-equity ratio of 0.66. But‚ the Board of Directors has decided to raise a significant amount of debt to finance the construction of a new manufacturing plant for the Solar-Electro division. This would increase the debt-to-equity ratio‚ which could generate concerns to investors. It is sensible to assess a low acceptable audit risk when the external users rely greatly
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LexiFi OVERVIEW ......................................................................................................................................................... 1 PRODUCT DEFINITION ................................................................................................................................... 1 SAMPLE PRODUCT............................................................................................................................................... 1 MLFI DEFINITION
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Equity and Equality in Australia’s education system There is an ongoing debate in the field of educational research and practice in Australia regarding the scope of equity and equality of opportunity within the nation’s education system. In their published article‚ Donnely & Caro (2008)‚ present two opposing opinions in approaching the question. Donnely (2008) suggests that overall Australia is a country that has high equity and high quality in its education system and that the nation “does better
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School of Business‚ Saint Mary’s University‚ Halifax‚ Nova Scotia‚ Canada Pay Equity: Fairness is in the Eyes of the Beholder BY HERMANN SCHWIND Statistics from StatsCanada have shown for years that women earn about 80% of men’s wages and salaries. Unions’ and women’s groups have used this wage gap as evidence of discrimination against women and as a basis for demands for more effective legislation on pay equity. They will not accept any evidence that this is impossible‚ i.e.‚ that there are
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Coordinating Media To Build Brand Equity Introduction: In developing effective integrated marketing communications programs‚ marketing communications must sometimes be explicitly tied together to create or enhance brand equity. Brand equity is very important. After reviewing the nature of the problem‚ proposes‚ alternative strategies as soluation Factors Creating Weak Brand Links: Few factors create weak bran link. These ares- Competitive Clutter: Advertisement competing with other
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MAIN SOURCES OF EQUITY AND DEBT FOR PROJECTS The main sources of equity and debt can be divided into two groups of lenders and sponsors. Group 1 – commercial lenders‚ include: 1. Banks; 2. Institutional lenders; 3. Commercial finance companies; 4. Leasing companies; 5. Individuals; 6. Investment management companies; 7. Money market funds. Groups 2 – commercial sponsors‚ include: 1. Companies requiring the product or service; 2. Companies supplying products or raw materials to the project;
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Lee Corporation Equity Scenario • Review the following information: Lee Corporation‚ a U.S. company‚ began operations on January 1‚ 2004. During its first 3 years of operations‚ Lee reported net income and declared dividends as follows. Net income Dividends declared 2004 $ 40‚000 $ –0– 2005 125‚000
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Divorce and Teens When a Family Splits Apart‚ the author writes‚ “[When your parents get divorced] it may mean fights over who gets custody of the children and where and with whom they live with” (price 9). Being a child stuck in the middle of two parents who love you can be heart breaking and tough to cope with. Some children only see their other parent every other weekend‚ and that can be very hard on the child. Not being able to see
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1. Referring to Exhibit 1‚ compute the annual percentage change in net income per common share-diluted for 1998–1999‚ 1999–2000‚ and 2000–2001. (Year 1998) 3‚180 x .24 = 763.20 763.20-1‚017.42/763.20=.33 or 33% increase (Year 1999) 3‚282 x .31 = 1‚017.42 Year 1998–1999 = 33% increase 1‚017.42-1‚858.45/1‚017.42=.82 or 82% increase (Year 2000) 3‚379 x .55 = 1‚858.45 Year 1999–2000 = 82% increase 1‚858.45- 922.59/1‚858.45= -.50 or 50% decrease (Year 2001) 3‚417 x .27 =
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