stock had an initial price of $92 per share‚ paid a dividend of $1.45 per share during the year‚ and had an ending share price of $104. Compute the percentage total return. The return of any asset is the increase in price‚ plus any dividends or cash flows‚ all divided by the initial price. The return of this stock is: R = [($104 – 92) + 1.45] / $92 R = 0.1462 or 14.62% Calculating Returns Rework the problem above‚ but this time assuming the ending share price is $81. Using the equation
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case is designed to introduce discounted cash flow valuation techniques in a cross-border setting. Groupe Ariel’s Mexican subsidiary is proposing the purchase and installation of some cost-saving equipment in its plant in Monterrey. The headquarters at Ariel requires a discounted cash flow analysis and an estimated net present value for expenditures of this magnitude. The issue is whether the analysis should be performed in euros or pesos. Relevant cash flows and appropriate discount rates are the
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CHAPTER 12: CASH FLOW ESTIMATION AND RISK ANALYSIS 1. Because of improvements in forecasting techniques‚ estimating the cash flows associated with a project has become the easiest step in the capital budgeting process. a. True b. False ANSWER: False 2. Estimating project cash flows is generally the most important‚ but also the most difficult‚ step in the capital budgeting process. Methodology‚ such as the use of NPV versus IRR‚ is important‚ but less so than obtaining a reasonably accurate estimate
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The Usefulness of Accounting Estimates for Predicting Cash Flows and Earnings Baruch Lev* New York University Siyi Li University of Illinois Theodore Sougiannis University of Illinois and ALBA January‚ 2009 * Contact information: Baruch Lev (blev@stern.nyu.edu)‚ Stern School of Business‚ New York University‚ New York‚ NY 10012. The authors are indebted to the editor and reviewers of the Review of Accounting Studies for suggestions and guidance‚ and to Louis Chan‚ Ilia Dichev‚ John Hand
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There are different ways in how two income statements are prepared. For example: the income statement (also known as P&L) of a merchandising company consists of Revenue‚ Expenses (related to the sales volume through the Cost of Goods Sold (COGS) and General & Administrative Expense (G&SA)‚ which all result in Net Income. The income statement of a Service company consists of Service Revenue minus any Expenses related to that service‚ which results in Net Income. Another way to look at it is that
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occurring in American business‚ a revolution of ideas about doing business which has largely (but not exclusively) been spearheaded by three individuals: Phillip Crosby‚ W. Edwards Deming‚ and Joseph Juran. While many people are of the opinion that the ideas of these three men may differ‚ it is the purpose of this paper to show that Crosby‚ Deming‚ and Juran all define quality in the same terms‚ albeit from different perspectives: the user‚ the manufacturer‚ and the manager. II. SUPPORTING DATA
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Good afternoon distinguished guests‚ parents‚ teachers‚ and fellow graduates. I know some of you are less then excited for what is about to happen‚ so I’m going to attempt to grab your attention and keep it with me for the rest of my speech. One thing we always hear from others is “Never forget your roots‚” and I can now see why they say that‚ as we’re ready to move on to another chapter of our lives. Let me give you a quick course in biology. The root of a tree is the foundation that keeps
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at approximately 0215 hours‚ I‚ Deputy Waldschmidt assisted Deputy Crosby at 268 N. Ryan Road near Conway Springs‚ Sumner County‚ Kansas for what was said to be an underage party with alcoholic beverages. Crosby‚ had previously attempted to stop two all-terrain vehicles who were driving illegally on the roadway. When Crosby‚ initiated his lights and sirens‚ the suspects fled through a field. When I arrived on scene I saw Crosby standing next to a morton building where he believed the suspects were
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Cash and Cash Equivalents Cash This includes money and other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit. Examples are bills and coins‚ checks‚ bank drafts and money orders. To be included or considered as cash‚ it must be unrestricted as to use‚ meaning‚ it must be readily available for use or payment of current obligations‚ thus‚ not subject to contractual or legal restrictions. The following items are included in “cash”:
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commit to build the A3XX? Your answer to this question presumably will be based on the rest of your paper‚ especially the results from question 2. Feel free to comment on anything else that you think is important or interesting. General Instructions: Prepare your answers in the form of a unified report rather than‚ for example‚ a set of bullet points. You may (but are not required to) include section headings‚ but the sections ideally will transition smoothly from one to the
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