currently that it has been estimated that sales of the company will increase significantly for the next two years and then stay the same for the third year. Net Sales for next three years have been estimated as $120 million‚ $144 million and $144 million. Cost of goods sold has been estimated to be 81.10% of sales for next three years. Thus‚ COGS values for years 2010‚ 2011 and 2012 come out to be $97.32 million‚ $116.784 million and $116.784 million. Another way to calculate the gross margin for next
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Investment in fixed assets of $35‚000.The assets will have a salvage value of $5‚000 at the end of the 5 year project. The asset will be depreciated‚ straight line‚ over that period. The impact of the project will be an increase in revenue of $30‚000 and cost of $17‚000 each year. The working capital of the company will need to be higher than normal by $1‚000 each year of the project. The tax rate is 34 %. What is the operating cash flow? What is the project’s net present value at a 20% discount rate
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treated as an entirely different company and the performance evaluation criteria is return on assets in recent years after major shift. Although‚ the divisions used to be treated as profit centres‚ this decision meant they are treated more as investment centres. The Company in 2008 & 2009: From the income statement for 2008 and 2009‚ it is noticed that there is an increase in revenue by 4% and 11% increase in net profit in 2009. From balance sheet for 2008 and 2009 it is noticed that Florence has issued
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Problems 5.3‚ 5.4‚ and 5.13 in Ch. 5 Problem 10.4 in Ch. 10 University of Phoenix FIN 419 Finance for Decision Making Problems 5.3‚ 5.4‚ and 5.13 in Ch. 5 Problem 10.4 in Ch. 10 [pic] a. If Sharon were risk-indifferent‚ which investments would she select? Explain why. Sharon would choose investment Y because only the expected returns matters to the company not the risk that is required. b. If she were risk-averse‚ which investments would she select? Why? Sharon would choose investment
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India PAPER – 2 : STRATEGIC FINANCIAL MANAGEMENT Question No.1 is compulsory. Answer any five questions from the remaining six questions. Working notes should form part of the answer. Question 1 (a) A Bank sold Hong Kong Dollars 40‚00‚000 value spot to its customer at ` 7.15 and covered itself in London Market on the same day‚ when the exchange rates were: US$ = HK$ 7.9250 7.9290 Local interbank market rates for US$ were Spot US$ 1 = ` 55.00 55.20 You are required to calculate
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repurchase announcement conveys no new information to investors about the profitability or risk it will be a good idea as the investors do not expect Hole Foods Donuts to grow in future But with no tax and repurchase of share will increase the share value and investors will assuming that company is earning more profit and growing in speed. B. How many shares will Hole Foods Donuts repurchase? Total Number of Shares: - 200‚000 Share Price: - $ 2/ share Total
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1. Evaluate the economics of Gulf’s exploration and development program in net present value terms. How do Gulf’s outlay for exploration and development compare to cash returns Gulf generates from these activities. If we evaluate the performance of Gulf’s management for the period from 1976 to 1983‚ we will find out that the management basically did not run the company properly. Many indicators prove the fact the management’s efforts in spending huge amount of money in exploration and development
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Given Initial capital expenditure $7‚900‚000.00 Shipping and installation costs $100‚000.00 Life of the initial expenditure 5.00 Salvage value $0.00 Marginal tax rate 34.00% Discount rate 15.00% Net working capital 10.00% Net working capital investment $100‚000.00 Fixed costs per year $200‚000.00 Sales price(1-4) $300.00 Sales price (5) $260.00 Variable cost of product $180.00 Year 0 Year 1 Year 2 Year
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Project Analysis Marko Hartmann‚ 2010-10-15 Indroduction Most companies prepare each year a list of investment projects planned for the next coming year: The annual capital budget. However‚ being in the list of investments proposals not mean automatic go ahead with this project. Managers have to ask themselves what makes a project tick‚ what are the main uncertainties and how can you recognize these at an early stage. Therefore‚ we learn to use different kinds of analysis –methods like sensitive
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Bibliography: RELIANCE- AN OVERVIEW Reliance Group‚ an offshoot of the Group founded by ShriDhirubhai H Ambani (1932-2002)‚ ranks among India’s top three private sector business houses in terms of net worth Reliance Capital has a net worth of Rs. 7‚902 crore (US$ 1.5 billion) and total assets of Rs. 31‚488 crore (US$ 6 billion) as on December 31‚ 2011.
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