assumed for women’s athletic department which the growth rate is forecasted to decrease from 12% in 2007 to 5% in 2011. Men’s casual footwear department‚ on the other hand‚ is expected to slowly increase its revenue growth rates when added to AGI assets. Women’s casual footwear department was not projected to grow at all. Operating income was forecasted using an assumption that the management of the company will be able to sustain EBIT margins at 13% for men’s athletic‚ 16% for men’s casual
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Problems for Exams -- FINA 6301 – Dr. Park | Chapters 2 and 3 [i]. In 2004‚ TimeNow Corporation had fixed assets of $1‚345‚ current assets of $260‚ current liabilities of $180 and shareholders ’ equity of $775. What was the net working capital for TimeNow in 2004? [ii]. During 2004‚ the Abel Co. had gross sales of $1 million. The firm’s cost of goods sold and selling expenses were $300‚000 and $200‚000‚ respectively
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1.0 INTRODUCTION 1.1 Origin of the Report Internship program is a prerequisite for EMBA program. Before completion of the degree‚ a student must undergo the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. As the classroom discussion alone cannot make a student perfect in handling the real business situation‚ therefore it is an opportunity for the students to know about real life situation through this program. This program consists of
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it into another Grade-A office building “Citic Tower II” * Asking price of the land was $1 billion * Net present value of property around $1.54 billion * Building cost around $1.6 billion Citic Pacific Limited (CPL) * Larry Yung-Chairman of CPL * Incorporated in Hong Kong and listed on the Hong Kong Stock Exchange in 1991 * In 2000‚ infrastructure and related assets formed the cornerstone of CPL’s activities‚ ranging from civil facilities such as complex bridge‚ road‚ and
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Corporate Finance Revision List Topic | Study Program | The Realm of Corporate Finance and Efficient Market Hypothesis | * Overview of finance’s main functions & its importance to organisations. * Importance of value creation as the primary objective of managers * Efficient Market Hypothesis (EMH) | Financial Statement Analysis | * Overview of calculating & interpreting accounting & financial ratios from corporate financial statements & understanding their significance in corporate
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Case Overview: Star River Electronics Ltd. Star River Electronics Ltd. is a large manufacturer and supplier of CD-ROMS based in Singapore. It was founded as a joint venture between an Asian venture capital firm‚ New Era Partners and Starlight Electronics Ltd‚ UK. It has enjoyed a great deal of success in the past‚ due in large part to their excellent reputation for producing high-quality discs. But due to recent emerge of Digital Video Disks (DVDs) Star River Electronics does need to face
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Corporate Finance Case 1 1. To calculate the present value of future cash flow in 2013‚ we first calculate the free cash flow between 2014-2020: Table 1: Free cash flow of 2014-2020 (in $million) After-tax profits Depreciation Gross investment in fixed assets Investment in net working capital Free cash flow 2014 2015 2016 2017 2018 2019 2020 5.25 2.40 5.70 3.10 3.00 3.12 3.40 3.17 4.35 3.26 6.00 3.44 7.60 3.68 (4.26) (10.50) (3.34) (3.65) (4.18) (5.37) (6.28) (1.39) (0.60)
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Capital Budgeting Mini Case There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well‚ for example‚ the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring
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underlying corporate financial decisions is to maximise the value of the company‚ which in turn maximises shareholder wealth. This involves the optimal use of scarce resources. Fisher’s Separation theorem formally links the concepts covered in the chapter to provide a single decision rule for a firm’s investment decisions. This decision rule is that management’s role is to maximise the present value of the firm’s investments in productive assets. Corporate managers face three important decisions in
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inflows are enough to repay the company for the cost of assets‚ cost of financing the asset‚ and a rate of return that would compensate the company for any errors made during the estimation of cash flows (“Capital Budgeting Techniques”‚ n.d.). When using evaluation techniques it is best to use more than one perspective so as not to produce biased results (Edmonds‚ Chapter 24‚ 2007). The time value of money assumes that the present value of a dollar in the future is less than a dollar today (Edmonds
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