wealthier? d. Is anyone worst off as a result of the discovery? 2. The average rate of return on investment in large stocks has outpaced that on investments in T-Bills by about 8% since 1926 in US. Why‚ then‚ does anyone invest in T-Bills? 3. You see an advertisement for a book that claims to show how you can make RM1 million with no risk and with no money down. Will you buy the book? Why? 4. You are bullish on Telekom stock. The current market price is RM50 per share‚ and you have RM5
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increasing by 10% each year 2) Expenses = 20K in year one‚ increasing by 15% each year 3) Depreciation Expense = 5K each year 4) Tax Rate = 25% 5) Discount Rate = 10% b. Corporation B: 1) Revenues = 150K in year one‚ increasing by 8% each year 2) Expenses = 60K in year one‚ increasing by 10% each year 3) Depreciation Expense = 10K each year 4) Tax Rate = 25% 5) Discount Rate = 11%
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CAPITAL STRUCTURE: Capital structure is how a company finances its overall operations and growth by using funds from equity or debt (Investopedia‚ 2012). Of course‚ every company must determine its preference on its debt-to-equity ratio and determine which capital structure works best for them. Some approaches to analyzing capital structure are: 1. EBIT – EPS: This analyzes the impact of debt on earnings per share (EPS). Optimizing shareholder’s wealth is the optimum goal and therefore‚ this
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CONCEPT OF PRESENT VALUE SO IMPORTANT FOR CORPORATE FINANCE? The importance of concept of present value to the world of corporate finance is that present value calculations are widely used in business and economics to provide a means to compare cash flows at different times. Present Value’s definition and simplistic formula used for normal purchases‚ the concept’s importance to corporate finance and why present value is the very first topic taught in finance classes explain that present value is an
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the differences in their cultures. In addition‚ you should have an understanding of how the newly formed organization will operate and continue to provide services to the community. Goals for Today: Explain where each company is on the competing values framework diagram. How this will affect the merger process? Design a mission and vision for the newly formed company that will: * Integrate the process of the two companies * Reduce the overall expenses as a percentage of profit
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. To find the PVA‚ we use the equation: PVA = C({1 – [1/(1 + r)]t } / r ) PVA = $60‚000{[1 – (1/1.0825)9 ] / .0825} PVA = $370‚947.84 The present value of the revenue is greater than the cost‚ so your company can afford the equipment. 7. Here we need to find the FVA. The equation to find the FVA is: FVA = C{[(1 + r)t – 1] / r} FVA for 20 years = $3‚000[(1.08520 – 1) / .085] FVA for 20 years = $145‚131.04 FVA for 40 years = $3‚000[(1.08540 – 1) / .085] FVA for 40
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on the market. 2. __________ assets generate net income to the economy and __________ assets define allocation of income among investors. A) Financial‚ financial B) Financial‚ real C) Real‚ financial D) Real‚ real 3. Asset allocation refers to the __________. A) allocation of the investment portfolio across broad asset classes B) analysis of the value of securities C) choice of specific assets within
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Present value is where the value on a set date of a future payment is discounted to reflect the time value of money and other factors. This can also apply to a series of future payments. Present value calculations are commonly utilized in business and economics to provide a way to compare cash flows at different times. Present value can be described as the current worth of a future sum of money or stream of cash flows given a specified rate of return. (http://www.getobjects.com) Future cash flows
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Financial Statement Analysis FOR Competition Bikes Western Governors University Financial Analysis (NAME) (DATE) A1. This financial analysis is for Competition Bikes that was taken from balance sheets and income statements from years 6‚ 7 & 8. A1a. Horizontal Analysis Strengths Net Sales – totaled $4‚485‚000.00 for year 6‚ and grew +33.3% or $1‚495‚000.00 between years 6 to 7. Cost of Goods Sold – totaled $3‚294
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Task 3 Report or essay format What is judicial precedent How do judges avoid judicial precedent What are the advantages of judicial precedent What are the disadvantages of judicial precedent MERIT: Find out how a proposal for a new law becomes a bill Understand what a ‘green paper’ and a ‘white paper’ are Learn the differences between a public bill and a private bill Find out about the different stages that the bill has to pass through‚ such as first‚ second and third reading Find how a bill is
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