Taxation and Business Valuation: FTE approach Exercise Suppose Lucent Technologies has an equity cost of capital of 10%‚ market capitalization of $10.8 billion‚ and an enterprise value of $14.4 billion. Suppose p $ ‚ p $ pp Lucent’s debt cost of capital is 6.1% and its marginal tax rate is 35%. a. What is Lucent’s WACC? b. If Lucent maintains a constant debt‐equity ratio‚ what is the value of a project with average risk and the following expected free cash flows? c. If Lucent maintains its debt‐equity ratio‚ what is the debt capacity of the project in
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the external environment (part 1) What’s going on out there now and in the future? Environmental influences in the broadest sense Macro/general environment: PESTEL Environmental influences related to the dynamics of the industry under question Competitive environment: Porter’s Five Forces (Porter‚ 1980) Example PESTEL The automobile industry Political – Climate change agenda – Fuel prices – Expansion of EU Economic – – – – Changes in disposable income Exchange rates
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and Technological forces. These are known as PEST factors. 1 2 PESTEL analysis of the macro-environment There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes‚ new laws‚ trade barriers‚ demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between:
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Besides that‚ PESTEL analysis will also be taken into account not only as a remarkable tool to analyze business environment but also as a supportive technique to utilize SWOT analysis. Moreover‚ this essay will shortly touch upon the Tows matrix as a sophisticated upgrade
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Information document B Interoperability problems in the developing countries 1. Introduction 1 2. Developing countries 2 3. CIS and Europe 4 4. Asia-Pacific 5 5. Americas 8 6. Africa 10 Introduction The ITU has made significant commitments to developing countries in a series of instruments: • Article 17 of the ITU Constitution that the functions of ITU-T are to be performed “bearing in mind the particular concerns of the developing
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Using PESTEL Analysis in Strategic Planning For Non-Profits PESTEL is a method of analysing the impact a variety of factors may have on potential profitability of an organisation or industry. A macro environmental analysis technique‚ PESTEL analyses the impact that political‚ economic‚ socio-cultural‚ technological‚ environmental and legal factors may have on an industry’s profitability potential (Johnson‚ Scholes & Whittington‚ 2005). Within each major PESTEL heading‚ there are a variety of sub-factors
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1) What is the economic intuition and what are the concepts underlying deferred tax accounting? What goals/objectives are standard setters trying to achieve by requiring deferred tax accounting‚ compared to say‚ just having companies recognize tax expense as the cash paid (or at least currently owed) to the government? The economic intuition of deferred tax accounting is to account for the differences between the tax expense shown in the financial statements and the current taxes payable
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Design for the Environment Guide High performance ISO 14001 DfE Environmental Management Systems The ISO 14001 Environmental Management System (EMS) can be optimized by emphasizing resource efficiency and cleaner production. Advantages of building this high performance into your ISO 14001 system include reduced production costs‚ efficient use of materials and resources‚ and improved public image. This guide sheet includes examples of high performance systems from a variety of ISO
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Management Development Institute of Singapore in Tashkent Faculty of Business Marketing Management of Marketing Channels Assignment Name: Gafurov Nodirbek Batch#: B0900377 Table of Contents Executive Summary 3 Introduction 4 The Role of Supply Chain Management 5 Flextronics Logistics Management 7 Reverse Logistics 9 Flextronics in Channel Management 10 References: 12 Executive Summary This assignment demonstrates the most key business areas of the given‚ Flextronics
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Analysis Company background (Cisco Systems): Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple‚ IT administrators Len Bosack and Sandy Lerner. Ina short period after founding‚ it became one of the most successful companies in high technology industry. In Cisco‚ manufacturing of its switches and router was outsourced‚ the company focused on core competencies: product design and development. Indirect sales and distribution
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