the anti-clotting medication‚ Plavix. To continue to focus on pharmaceuticals‚ in the early years of 2000-2002‚ the company divested many of their non-pharmaceutical divisions‚ such as Clairol and the Mead-Johnson Nutritional division‚ and purchased DuPont Pharmaceuticals as well as an almost 20% share of ImClone Systems‚ which was getting ready to release a new anti-cancer drug‚ Erbitux (SEC eyes Bristol-Myers‚ 2002). In April of 2002‚ the trouble for BMS began with an SEC investigation into their
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Yr: 2014 Yr: 2013 Remarks 1.1 Profitibality Ratio 1.1.1 ROE= x 100 = 10.71% x100 = 10.30% Higher the better 1.1.2 ROTA= x100 = 18.27% x100 = 19.45% Higher the better 1.1.3 GPM= x100 = 71.67% x100 =70.35% Higher the better 1.1.4 OPM= x100 =28.72% x100 =29.79% Higher the better 1.1.5 NPM= x100 =43.48% x100 =39.46% Higher the better 1.1.6 NPM= x100 =38.74% x100 =35.04% Higher the better 1.2 Asset Utilisation 1.2.1 TA TURN= x100 =18.27% x100 =19.45% Higher the better 1.2.2
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**What is NPV?** a) If the value of NPV is greater than 0‚ then the project is a go! In other words‚ it’s profitable and worth the risk. b) If the value of NPV is less than 0‚ then the project isn’t worth the risk and is a no-go. So NPV takes risk and reward into consideration‚ which is why we use it in the world of corporate finance and capital budgeting. **Example** In order for us to calculate NPV‚ let’s use the following example. Suppose we’d like to make 10% profit on a 3
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before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer. 2. Assume that the after-tax required rate of return for Deer Valley is 8%‚ the income tax rate is 40%‚ and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your
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present value the net present value (NPV) or net present worth (NPW)[of a time series of cash flows‚ both incoming and outgoing‚ is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price‚ the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash
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NPV Versus IRR W.L. Silber I. Our favorite project A has the following cash flows: -1000 0 0 1 0 2 +300 3 +600 4 +900 5 We know that if the cost of capital is 18 percent we reject the project because the net present value is negative: - 1000 + 300 600 900 + + = NPV 3 4 (1.18) (1.18) (1.18)5 - 1000 + 182.59 + 309.47 + 393.40 = -114.54 We also know that at a cost of capital of 8% we accept the project because the net present value is positive: - 1000 + 300 600 900
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INTRODUCTION Stock market is a market where the trading of company stock‚ both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country. Stock Exchanges are an organized marketplace‚ either corporation or mutual organization‚ where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers‚ or as principals for their own accounts
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Figure 1: Cash flow comparison for 15 and 25 year term (NY) 9 Figure 2: Cash flow comparison for 15 and 25 year term (HK) 9 Figure 3: Revenue and Operating Expenses (HK) 10 List of Tables Table 1: List of Assumptions made for NPV analysis 4 Table 2: List of Limitations on NPV Analysis. 4 Table 3: Estimation of Resale value of Carrier @15th year 7 1. Introduction 1.1 Executive Summary Ocean Carriers Inc. (OCI) is an International provider of Marine transportation services mainly focussing on
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What is the DuPont equation‚ and how does it capture the nature of expense control‚ efficiency of asset management‚ and financial leverage (or debt) of a firm? If you were the CFO of your firm (or a hypothetical firm)‚ what variable would you concentrate your efforts on and why? The DuPont equation is a method of measurement that was started by the DuPont Corporation in the 1920s. In this method of measurement the assets are measured at their gross book value rather than at their net book value which
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Principles of Managerial Finance MBA6‚ GROUP 1 Phelps Toy Company TOYS Prepared by :Essam Gayad ‚ Aladdin Al-Jajeh‚ Majed Mourtada ‚ Shaza.Rifaai MHD Obada Morad Date 22nd May 2012 MBA6 -MF Phelps toy company case‚ 6 YEARS BUDGET STUDY‚ PROJECT FEASIBLITY Table (1) sales and net income of the company for the past years. year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 $SALES 150‚000 240‚000 756‚000 1‚340‚000 2‚680‚000 3‚320‚000 5‚580‚000
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