Corporate finance: Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm’s financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms‚ rather than corporations alone‚ the main concepts in the study of corporate finance
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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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1. Basic Concepts Product cost = Direct Labor (DL) + Direct Materials (DM) + Manufacturing Overhead (MOH) Financial accounting Managerial Accounting + Sales + Sales - COGS - Variable Costs = Gross Profit = Contribution Margin - SG&A - Fixed Costs = Net Profit = Net Profit COGS (Cost of Goods Sold) is an “inventoriable cost” ( recorded in the Balance Sheet as inventory and expensed (Income Statement) when goods are sold SG&A (Selling‚ General & Administrative) are
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Watching the film 13th brought a lot of thinking as to how different African Americans were treated in the community because of the new laws throughout each presidency‚ the presidents created. Many African Americans were incarcerated throughout the years and it was a ridiculous amount of people in jail throughout each President’s term. These People were incarcerated for little things and most of them for nothing. The only topic that presidents talked about was crime and how it should be handle. The
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departments within a business‚ but they collaborate over time to achieve some set purpose‚ goal or project. For instance‚ before a small business creates a new product‚ it may organize a team composed of people from all departments – engineering‚ finance‚ legal‚ marketing‚ etc. – to consider all aspects of the potential new product to avoid costly surprises down the road. With a team‚ individuals recognize the expertise and talents of others needed to achieve the team’s goal. Additionally‚ teams are
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rather small company with a limited investor base utilizing this approach would seem to be counter intuitive. The possibility would exist with a high probability that offering goals may not be reached or sustained for any length of time post IPO. To answer the above question‚ please include responses to the following issues together with other issues that you think are important: ●The type of investors AVG is likely to attract ●The lessons learned from Google and Morningstar from their auction IPOs
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is better. Q2. Assume that you have given a choice between incurring an immediate outlay of Rs 10‚000 and having to pay Rs 2310 a year for 5 years (first payment due one year from now) the discount rate is 11%. What would be your choice? Will your answer change if Rs 2310 is paid in the beginning of each year for 5 years? Ans Option 1: Annuity Deferred: 2310*3.6959 = 8537.5 Option 2: Annuity Due 2310*3.6959 *1.11 = 9477 Both the options are better than paying lumpsum of Rs
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CASE I THE RISING EURO HAMMERS AUTO PARTS MANUFACTURERS Udo Pfeiffer‚ the CEO of SMS Elotherm‚ a German manufacturer of machine tools to engineer crankshafts for cars‚ signed a deal in late November 2004‚ to supply the U.S. operations of DaimlerChrysler with $1.5 million worth of machines. The machines would be manufactured in Germany and exported to the United States. When the deal was signed‚ Pfeiffer calculated that at the agreed price‚ the machines would yield a profit of €30‚000
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13th‚ 14th‚ and 15th Amendments The thirteenth amendment formally abolished the institution of slavery‚ and gave congress the power to enforce it. The thirteenth amendment was necessary because even though the Emancipation Proclamation declared slaves in the south to be freed‚ the southern states refused to free them‚ and the amendment encompassed the entire U.S. and it’s territories. Overall‚ I feel the amendment was a success‚ because it gave the government the ability to enforce it as a law
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QUANTITATIVE ANALYSIS APPROACHES TO QUALITATIVE DATA: WHY‚ WHEN AND HOW - Savitri Abeyasekera Statistical Services Centre‚ University of Reading‚ P.O. Box 240‚ Harry Pitt Building‚ Whiteknights Rd.‚ Reading RG6 6FN‚ UK. Phone 0118 931 8459‚ e-mail s.abeyasekera@rdg.ac.uk 1. Introduction In many research studies involving the use of participatory tools‚ much of the information gathered is of a qualitative nature. Some of this will contribute to addressing specific research questions‚ while
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