Chapter 12 Corporate Valuation and Financial Planning ANSWERS TO END-OF-CHAPTER QUESTIONS 12-1 a. The operating plan provides detailed implementation guidance designed to accomplish corporate objectives. It details who is responsible for what particular function‚ and when specific tasks are to be accomplished. The financial plan details the financial aspects of the corporation’s operating plan. b. Spontaneous liabilities are the first source of expansion capital as these accounts increase
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Start-up capital is the finance needed by a new business to pay for essential fixed and current assets before it and begin trading Revenue- money coming into the business. Selling products Revenue= number of products sold x price Costs- money going out of the business. E.g. salaries‚ rent‚ electricity/water Profit- Money which is left over after all costs have been paid P= R-C A car manufacture - Machinery - Labour - Land - Utilities - Raw materials A school - Labour
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Cost drivers‚ as propounded by Porter (1985) are the structural causes of the cost of an activity in the value chain. They determine the behaviour and level of costs within an activity. A cost driver can be completely‚ partly or not at all under the control of a firm. It is therefore important for a manager to understand these factors because according to the Neo-classical model of the firm‚ the firm’s objective is to maximise profit by producing a given level of output at the minimum cost level
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evaluating the risks associated with a proposed project 3. (TCO 1) Book values are different from market values because: (Points : 3) Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company’s balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. All of the above None of the above 4. (TCO 1) Which
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Annual Report and Form 20-F 2012 bp.com/annualreport Building a stronger‚ safer BP Annual Report and Form 20-F 2012 bp.com/annualreport Building a stronger‚ safer BP Front cover imagery The Petroleum Geo-Services (PGS) Ramform Sterling seismic vessel‚ which conducts seismic surveys for BP. Left image: the vessel working in the Ceduna Basin‚ Australia. Centre image: the vessel tows 12 streamers (pictured) behind it‚ each 8km long and equipped with hydrophones to pick up echoes from
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References: Bhole L.M‚ Financial Institutions and Markets: Structure‚ Growth & Innovations‚ Tata McGraw Hill Pnadey‚I.M. Ninth Edition‚ Financial Management‚ Vikas Publishing House Pvt. Ltd.
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Term Paper Managerial Success Productivity is the essence of any work environment. Despite the type or arena of employment; workers produce something whether it is an object or an intangible item. Many occupational tasks are manual‚ clerical‚ or intellectual. Despite which type of task; a manager is responsible for the product‚ which is a large responsibility. Such responsibility necessitates skills such as goal setting‚ planning‚ implementing‚ and controlling. These four skills dictate the
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Raymond Castillo Managerial Communications (Man-373-OL009) Written Assignment 1 Hynes introduces a calculated approach to managerial communication by dissecting it into three separate‚ yet mutually dependent functions. Hynes believes that with these approaches‚ management and employees alike can learn to adapt to one another to create an effective work force. The first layer is based on the idea that an employer and his employees can create a positive work atmosphere with the communication climate
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COR167e Managing Your Personal Finances Tutor Marked Assignment 01 Name: Jamilah Binte Hamzah PI Number:Question 1 a) I want to acquire $20 000 for my wedding in 4 years’ time‚ this can be done by saving up $500 every month. I want to acquire a savings of $50 000 in 40 years’ time for retirement‚ this can be done by saving more money and cutting down on the expenses that I do not need. I would like to clear my loans worth of $11 000 in total in 5 years’ time‚ this can be done by paying back
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Final Finance Exam Notes Definitions: 1. Capital Budgeting is the process of evaluating proposed large‚ long-term investment projects. Capital budgeting is primarily concerned with evaluating investment alternatives. The first step in the capital budgeting process is idea development. A characteristic of capital budgeting is the internal rate of return must be greater than the cost of capital. One of the simplest capital budgeting decision method is the payback method. Capital budgeting
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