Case Solutions Fundamentals of Corporate Finance Ross‚ Westerfield‚ and Jordan 9th edition CHAPTER 1 THE McGEE CAKE COMPANY 1. The advantages to a LLC are: 1) Reduction of personal liability. A sole proprietor has unlimited liability‚ which can include the potential loss of all personal assets. 2) Taxes. Forming an LLC may mean that more expenses can be considered business expenses and be deducted from the company’s income. 3) Improved credibility. The business may have
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American Government 24 February 2012 The Six Basic Principles Six basic principles build our Constitution and is the backbone of our government. Popular sovereignty‚ limited government‚ separation of powers‚ checks and balances‚ judicial review‚ and federalism all play major roles; from protecting our rights‚ to creating an equal balance of power in our government. Without these principles our Constitution and country as a whole would be different. Popular sovereignty means the government can
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1.Is growth of the Internet‚ in terms of users‚ expected to continue indefinitely? What will cause it to slow‚ if anything? The number of internet users in the U.S. is expected to grow to around 215 million users by 2005‚ up from 170 million users in mid-2001. The growth rate of new users is slowing though‚ due to cost and complexity of computer use required for Internet access. Unless the price of computers drops significantly the internet growth rate will continue to decline. However‚ even if
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ijokl Interest Rates and Required Returns As noted in Chapter 2‚ financial institutions and markets create the mechanism through which funds flow between savers (funds suppliers) and borrowers (funds demanders). All else being equal‚ savers would like to earn as much interest as possible‚ and borrowers would like to pay as little as possible. The interest rate prevailing in the market at any given time reflects the equilibrium between savers and borrowers. INTEREST RATE FUNDAMENTALS The
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References: Bansai‚ M.‚ & Sama‚ L. M. (2000). Ethical dilemmas in MNCs’ international staff policies. A conceptual framework. Journal of Business Ethics‚ 25: 221–235. Bartlett‚ C. A.‚ & Ghoshal‚ S. (1989). Managing across borders. The transnational solution. Boston: Harvard Business School Press. Bowie‚ N. E.‚ & Vaaler‚ P. (1999). Some arguments for universal moral standards. In G. Enderle (Ed.)‚ International business ethics. Challenges and approaches (pp. 160–173). Notre Dame‚ London: University of
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a. Why is corporate finance important to all managers? Corporate finance is important to all managers as it helps to achieve the three goals of the company. These are skilled people at all levels‚ strong relations with outside groups‚ and the ability to execute plans. Corporate finance can be used to forecast and fund the strategies of the company. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages
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2) Which department authorizes changes in employee pay rates? - Production department does the authorizing; Production employees prepare two types of time records. This helps the cost accounting department. They use this to allocate direct labor changes to work-in-process (WIP) Accounts. 3) Why should the employee’s supervisor not distribute paychecks? - Because there is a chance the supervisor could create a non-existent employee and time card him in then taking his checks for themselves.
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Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5) | Abnormally high executive compensation Targeted share repurchases Shareholder rights provisions Restricted voting rights Poison pills | 2. (TCO F) Which of the following statements is correct? (Points : 5) | The MIRR and NPV decision criteria can never conflict. The IRR method can never be subject to the multiple IRR problem‚ while
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CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concept Questions 1. In this context‚ an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the asset or input is actually worth today‚ not‚ for example‚ what it cost to acquire. 2. a. Yes‚ the reduction in the sales of the company’s other products‚ referred to as erosion‚ should be treated as an incremental cash flow. These lost sales are included because
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Running Head: Chapter Summary Chapter 6 Summary Principles of Management Mayville State University Jamal Branco October 14‚ 2014 Author Note: Chapter 3 Summary is being submitted to Professor Robert Johnston on October 14‚ 2014 by Jamal Branco as part of his studies in Principles of Management at Mayville State University 2 Hours Three Types of Uncertainty For a long time environmental uncertainty has been a catch all term among managers and researchers but as time went on researchers discovered
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