Ameritrade’s Cost of Capital Harvard Case Study 1. What factors should Ameritrade management consider when evaluating the proposed advertising program and technology upgrades? Why? One factor that is significant and pertinent to this case is determining the cost of capital that should be employed for Ameritrade. An appropriate discount rate is required to derive the net present value of the advertising program and technology upgrades. With that said‚ estimating future cash flows
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Facts: The Negro plaintiffs in these cases were denied admission schools attended by the white children under the laws requiring or permitting segregation according to race. All the court adhered to the “separate but equal” doctrine and held that the plaintiffs were not admitted to the white schools (except for the plaintiff in the Delaware case). In the instant cases‚ the plaintiffs contend that segregated public schools are not “equal” and they are deprived of the equal protection of the laws.
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Advanced Corporate Case 2 – Tianjin Plastics Executive Summary Although business risk is low due to contractual obligations‚ and so is financing risk (despite high debt levels)‚ Tianjin Plastics project carries material currency risk‚ both for its cash flows as well as dollar-profitability of Maple‚ the main sponsor. However‚ this should not turn the project unprofitable. Broadly defined political/country risk must be considered and accepted by Maple‚ if project is to happen. Hedge possibilities
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Pepsi Cola Products Philippines‚ Inc. (petitioner) v. Honorable Secretary of Labor (respondents) 1. Facts: a. June 1990: The Pepsi-Cola Employees Organization-UOEF (Union) filed a petition for certification election with the Med-Arbiter seeking to be the exclusive bargaining agent of supervisors of Pepsi-Cola Philippines‚ Inc. (PEPSI). i. Med-Arbiter granted this stating that PCEU-UOEF was an affiliate of Union de Obreros Estivadores de Filipinas (or the Federation) with two (2) rank and file
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Overview 3 Initial Proposal of XL-4 3 XL-4 Opposiation 4 Strategic Planning and Decentralization of Profit Centers 4 Goal Congruence and Management Control System 5 Conclusion 8 Definitions………………………………………………………………….……………………………………………………………………………8 Case Questions………………………………………………………………………………………………………………………………………10 References …………………………………………………………….……………………………………………………………………………..19 Class Discussion Points …………………………………………. .…………………………………………………………………………….19 Multiple Choice Questions ……………………………………………………………………………………………………………………19
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MINI-CASE A) Answer: Capital budgeting is the process of analyzing additions to fixed assets. Capital budgeting is important because‚ more than anything else‚ fixed asset investment decisions chart a company’s course for the future. Conceptually‚ the capital budgeting process is identical to the decision process used by individuals making investment decisions. These steps are involved: 1. Estimate‚ evaluate‚ & assess the riskiness of the cash flows 2. Determine the appropriate
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Case #4 Fighting Grime (Clorox Company) This is a fun case in that it involves branded products that students will recognize yet probably do not associate with Clorox. A good way to introduce the case could be to bring in product samples or show the brand names of their many products and ask students what they have in common? The case is short and vivid and can be assigned ahead or simply read in class. It is an easy case to grasp quickly yet provides some very clear examples of strategic
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plants in Winnipeg - which was based on the opportunity if the company expanded into the U.S. market. We have analyzed the project in terms of NPV based on the expected sales and cost figures. The NPV calculation is done to determine if undertaking the project would bring profit or loss to the firm. Various scenarios were taken to project the NPV at those cases. This report also covers the Quantitative risks associated with exchange rate as Laurentian will be exporting to US grocery chain and will earn
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therefore recommended that Merck passes on the investment. Sensitivity analysis also show that adjusting the probabilities of successfully passing each approval process to more realistic expectations has a drastically negative affect on the project NPV. Data Analysis Based on the decision tree model‚ it is recommended that Pat Harlow does not invest in the purchase of KL-798 from Kappa Labs assuming that the current payoffs and expected probabilities given currently are correct and do not change in
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1. Consider a 1-Year $10‚000 CD A. The future value of a $10‚000 CD that has a maturity of 1 year at maturity with 10% interest is $11‚000. Financial Calculator Inputs: $ -10‚000=PV‚ 1=N‚ I=10‚ FV=? ($11‚000) B. The future value of a 1-year‚ $10‚000 CD after one year at an interest rate of 5.0% is $10‚500. Financial Calculator Inputs: $-10‚000=PV‚ 1=N‚ 5=I‚ FV=? ($10‚500) The future value of a 1-year‚ $10‚000 CD after one year at an interest rate of 15.0% is $11‚500. Financial
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