FINANCIAL MODELING The materials in this book are intended for instructional and educational purposes‚ to illustrate situations similar to those encountered in the real world. The reader will understand that MIT Press and its authors do not guarantee the accuracy or completeness of any information published in this book. Neither MIT Press nor its authors is responsible for the consequences of the implementation of models or information presented in this book. FINANCIAL MODELING Simon Benninga
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allow managers to negotiate for a higher purchase price in the face of a takeover bid – to the benefit of shareholder value. CHAPTER 2 14. The present value of the 10-year stream of cash inflows is: [pic] Thus: NPV = –$800‚000 + $886‚739.66 = +$86‚739.66 At the end of five years‚ the factory’s value will be the present value of the five remaining $170‚000 cash flows: [pic] 15. [pic] 16. a. Let St = salary in year t [pic][pic]
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Financial Feasibility Monthly Income Statement Factors Calculations Results Potential Gross Income $2.30/sq ft * 201‚707 sq ft $463‚930.00 Leasable space 201‚707 sq ft Parking 400 * $145 $58‚000.00 Vacancy allowance: 15% 15%* ($463‚930+$58‚000) $ 78‚290.00 EGI: $463‚930-$69‚590 $443‚640.00 Operating expenses: 32% of EGI $257‚094*.32 $141‚965.00 Net operating income: $257‚094 - 82‚270 $301‚675.00 Assumptions Changes in Rent “Commercial real estate investors and occupiers
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The novel‚ Triage‚ by Scott Anderson‚ chronicles war photojournalist Mark Walsh’s experiences as he struggles through the hardships of his occupation and the challenges of daily life. By incorporating themes such as guilt‚ forgiveness‚ the nature of modern war‚ and sense of belonging‚ Anderson is able to link characters and create complex parallel stories while maintaining an appealing plot. When Mark is hit by an artillery shell in Kurdistan his world is turned upside down. He survives but his
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study of the Scotts Miracle-Gro Company (Scotts)‚ the largest company in North America’s lawn and garden industry. It was founded by Orlando McLean Scott in 1868‚ and located in Ohio. Miracle-Gro was founded by Horace Hagedon in 1951 and merged with Scotts in 1995. Miracle-Gro is a leader in lawn and garden care chemical industry before the merger‚ while Scotts was known for its grass seed‚ fertilizers and fertilizer spreaders. Bob Bawcombe was the director of operations of Scotts’ Temecula plant
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Current Ratio * A liquidity ratio that measures a company’s ability to pay short term obligations. Current Ratio 2011 Current Assets Current Liabilities 35‚343‚809 35‚774‚652 =0.99 The ratio of 0.99: 1 means that for every ringgit of current liabilities‚ Hwa Tai has RM0.99 of current assets. Current Ratio 2010 Current Assets Current Liabilities 36‚746‚539 37‚634‚489 =0.98 * The ratio of 0.98 : 1 means that for every ringgit of current
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FIN 819: Financial Management Administrative Issues Course Overview FIN 819: Lecture 1 Today’s plan l Administrative issues l Course overview l Team formation • prerequisite • add‚ drop and withdraw • projects • case writing and discussion • final exam • final grade FIN 819: Lecture 1 The instructor l l l l l My name is George Li Office: DTC 582 and BUS 315 Email: li123456@sfsu.edu Office hours: Monday: 1:30 p.m. to 3:30
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Just in time (JIT): is a production strategy that strives to improve a business’ return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives‚ the process relies on signals or Kanban between different points‚ which are involved in the process‚ which tell production when to make the next part. Kanban are usually ’tickets’ but can be simple visual signals‚ such as the presence or absence of a part on a shelf. Implemented correctly‚ JIT focuses on continuous
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Freedom: The Dred Scott Decision The topic of slavery was a major reason for the Civil War. One of most well known trials is the Dread Scott Decision‚ he fought for years and had several trials before he was finally free. It takes a strong man to not give up on his dream. A dream that he would not live to see play out for many other slaves. Dred Scott was born into slavery around 1800 his first known owner was Peter Blow in 1830. Before Mr. Blow’s death in 1832‚ Dred Scott was sold to Dr. Emerson
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“We are all affected by war in some way‚ however slight” Scott Anderson’s Triage reveals the affects war has on people by linking the characters through war and parallel stories. From a pressured Dr. Talzani operating in a cave in Kurdistan to Mark and Colin who are war photographers and Elena and Diane their partners .As well as a ‘specialist’ war psychiatrist‚ Joaquin Morales. Anderson uses various techniques and symbols to communicate these ideas and writes in a conversational format to incorporate
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