a. Why is corporate finance important to all managers? Corporate finance is important to all mangers because it lets them know the company’s financial situation before any decisions can be made within the organization. It helps managers develop strategic financial issues associated with achieving goals. Having a solid understanding of corporate finance helps mangers find ways to raise and manage its capital‚ which type of investments the firm should make‚ if profits are earned‚ how these profits
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Personal Finance Personal finance is the application of the principles of finance to the monetary decisions of an individual or family. It addresses the ways in which individuals or families obtain‚ budget‚ save‚ and spend monetary resources over time‚ taking into account various financial risks and future life events. It refers to the financial decisions which an individual or a family unit is required to make to obtain‚ budget‚ save‚ and spend monetary resources over time‚ taking into account
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Għ.S.L. Online Law Journal 2013 The Principle of Separate Corporate Personality RUTH BONNICI A commercial partnership has a legal personality distinct from that of its member or members‚ and such legal personality shall continue until the name of the commercial partnership is struck off1 the register.2 This separate juridical personality comes into being upon registration of a new company as one of the first legal effects of registration. The position as it had been under the Commercial
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caused by the negligence of the independent contractor‚ hired by D. * However‚ R v F is a strict liability and the negligence of the third party does not exonerate D’s liability. | Held | * Court was of the opinion that obligation on the person who lawfully brings on his land something which can naturally do mischief if it escapes then D should be liable * This case has laid down the general guideline as to when R v F rule applies:Who can sue?: Owner or occupier of the land Conditions? :
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investment called? A. dividend yield B. cost of equity C. capital gains yield D. cost of capital E. income return 2. Textile Mills borrows money at a rate of 13.5 percent. This interest rate is referred to as the: A. compound rate. B. current yield. C. cost of debt. D. capital gains yield. E. cost of capital. 3. The average of a firm’s cost of equity and aftertax cost of debt that is weighted based on the firm’s capital structure is called the: A. reward to risk ratio. B. weighted capital gains rate
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simple but widely applicable principles that are useful when trying to understand decisions that are made by everyday people to the workings of highly complex markets. There are Seven Core Principles of Economics. These principles are: Scarcity Principle‚ Cost-Benefit Principle‚ Principle of Unequal Costs‚ Principle of Comparative Advantage‚ Principle of Increasing Opportunity Cost‚ Equilibrium Principle‚ and Efficiency Principle. Being familiar with these seven core principles is vital in your understanding
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• List some problem areas in estimating the cost of capital. 1. LECTURE SUGGESTIONS Chapter 10 uses the rate of return concepts covered in previous chapters‚ along with the concept of the weighted average cost of capital (WACC)‚ to develop a corporate cost of capital for use in capital budgeting. We begin by describing the logic of the WACC‚ and why it should be used in capital budgeting. We next explain how to estimate the cost of each component of capital‚
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Valuation- “projected financial performance into values.” Involves projecting/ making budgets. Value of an Asset = Value of Cash Flow (CF) it Will Generate (not profits) CF=1/(1+r)^1 value is based on three things- Current Cash Flow‚ Expected growth (used with to estimate future cash flow)‚ Riskiness of expected future cash flow (discount rate).Net Present Value- Value CFs using project discount rate based on risk Investment Decision-which real assets the firm should acquire.Choose positive and
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boast of ancient civilization is India. When the inhabitants of Europe were living under the barbaric conditions‚ this country had reached the highest peak of civilization and had parliamentary institutions when people of Europe were mere nomads." - B. R. Ambedkar The latter half of the 19th century can be indisputably credited with giving birth to some of the greatest sons to mother India‚ who rose and shone like shining stars during the 20th century in the otherwise dark skies of the country.
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J&R Electronics 1. Analyze J&R Electronics using competitive forces and value chain models. What is its business model and business strategy? How does it provide value? J&R’s used Loyalty Labs’ Blue Martini software‚ which is an example of Michael Porter’s approach which says that using the internet is an “enabling strategy” and as a “complement to and not a cannibal of traditional ways of competing”. J&R’s customers are unique in that they go directly their site instead of arriving through
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