What are Capital Markets? Capital markets are markets where people‚ companies‚ and governments with more funds than they need (because they save some of their income) transfer those funds to people‚ companies‚ or governments who have a shortage of funds (because they spend more than their income). Stock and bond markets are two major capital markets. Capital markets promote economic efficiency by channeling money from those who do not have an immediate productive use for it to those who do. 1.
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Chapter 8 The Cost of Capital 236 CHAPTER 8—THE COST OF CAPITAL TRUE/FALSE 1. Capital refers to items on the right-hand side of a firm’s balance sheet. 2. The component costs of capital are market-determined variables in as much as they are based on investors’ required returns. 3. The cost of debt is equal to one minus the marginal tax rate multiplied by the coupon rate on outstanding debt. 4. The cost of issuing preferred stock by a corporation must be adjusted to an after-tax
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Customer equity is a result of customer relationship management. Customer equity is the total of discounted lifetime values of all of the firms customers. In layman terms‚ the more loyal a customer‚ the more is the customer equity. Firms like McDonalds‚ Apple and Facebook have very high customer equity and that is why they have an amazing and sustainable competitive advantage. Customer Equity is made up of three components. Value Equity‚ Brand Equity and Relationship Equity. Value Equity
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Leonardo Quiñones Psychology 09/24/2010 Chapter 4 Essay What I found to be very interesting from chapter four was the importance of raising a child correctly. If a child is neglected and abused‚ the consequences a child has may not be detected at first but can show up later on when they grow up. There are different forms a child can be abused‚ they can be physical‚ psychological and behavioral. One of the common forms a child is physically abused is by being shaken. The injuries that
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Overview of Economy‚ Business and Challenges Introduction Latin America suffered during the years of 1980-1990 with political instability and low growth rates. Nowadays the situation is different‚ the region is improving towards economic stability and grater democracy‚ however the reforms performed during the last decade are still incomplete. High rates of poverty and bad income distribution remain as the main problems of the region. The last few years has shown that Latin America economy is getting
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hedge option‚ she should forecast the profit or loss she may incur with the hedge. So‚ since she expects the USD to appreciate‚ it would be advisable for her to either short a forward contract or call option. A forward contract is an agreement between a corporation and a financial institution to exchange a specific amount of a currency at a specified exchange rate (known as the forward rate)‚ on a specified date in the future. However‚ the disadvantage of a forward contract is that both the parties
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Social media has become increasingly popular among people of all ages due the fast advances of technology. Businesses have also found that a part of having a good business to be savvy with social media. That includes interacting with consumers beyond giving them information about the product‚ being consistent and keeping up with daily posts‚ as well as keeping the content interesting. Part of being a successful organization is much more than the quality of the product‚ and how you market it‚ but
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Debt Crisis In Europe Bilal Merjan Hodges University ECO 6705 Dr. Ray Kest August 11‚ 2013 Table of Contents Abstract…………………………………………………………………………..4 Introduction………………………………………………………………………5 Research Paper Question…………………………………………………………7 1.What Caused The Financial Crisis In Europe………………………………….7 2.Two Views On The European Economic Crisis………………………………10 3.Divided They Fall……………………………………………………………...11 4.Growth In Time of Debt……………………………………………………….12 5.Greece and The European Debt
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to the lecturer. Thus groups should subdivide work and assign a task to each student. Please lets uphold the principle of ethics as prospective business people. CURRICULUM TOPICS * Workforce planning * Recruitment * Skills * Selection GLOSSARY Strategy: long-term business plan of an organisation. Market leader: the business that has the largest share of the market‚ measured by sales (value or volume). Logistics: the orderly movement and storage of goods throughout
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assignment submitted at 5:01 p.m. on 4 August‚ and 20% from an assignment submitted at 5:01 p.m. on 5 August. Assignment Questions You must answer all questions of both parts. Part I - England In Modern Equity‚ 19th Ed.‚ Jill E Martin discusses two continuing controversies in connection with the history of equity. First‚ on pages 18-19‚ she writes of
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