services‚ print marketing‚ promotional products‚ and fraud protection services. Deluxe and its subsidiary brands including New England Business Services Inc. (NEBS)‚ McBee (formerly Royal McBee) and Checks Unlimited are organized into three business segments: Deluxe Financial Services-serving banks and credit unions Deluxe Small Business Services-serving small businesses Direct Checks-producing and delivering checks directly to consumers Deluxe is based in Shoreview‚ Minnesota and has 33
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Energy/Sample 2 Midland Energy Resources‚ Inc. Midland Energy Resources‚ Inc. is a global energy company that operates in oil and gas exploration and production (E&P)‚ refining and marketing (R&M)‚ and petrochemicals. Midland’s most profitable segment is its E&P division which produces 67% of the company’s net income (Exhibit 3). Its largest division is R&M with the Petrochemical division being the smallest. The primary goals of Midland’s financial strategy are to fund substantial overseas growth
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section 10.9 Adjusting the Cost of Capital for Risk. Safeco Company and Risco Inc are identical in size and capital structure. However‚ the riskiness of their assets and cash flows are somewhat different‚ resulting in Safeco having a WACC of 10% and Risco a 12% WACC. Safeco is considering Project X‚ which has an IRR of 10.5% and is of the same risk as a typical Safeco project. Risco is considering Project Y‚ which has an IRR of 11.5% and is of the same risk as a typical Risco project.
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Table of Contents The Coca Company’s Profile The Coca-Cola Company‚ a beverage company‚ manufactures and distributes coke‚ diet coke‚ and other soft drinks worldwide. The company primarily offers nonalcoholic beverages‚ including sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation‚ such as carbonated energy drinks‚ and carbonated waters and flavored waters. The company’s still beverages comprise nonalcoholic beverages
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finding beta‚ cost of debt‚ and cost of equity in order to find weighted average cost of capital‚ or WACC‚ must be calculated using proxy firms and divisional data. The firm’s use of WACC is directed towards analysis of the company’s future capital investments. Specifically‚ firms use it as a discount rate in determining a projects profitability versus the cost of taking it on. A firm-wide WACC is a beneficial tool for determining whether a firm should repurchase shares or buy back equity. On
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Christopher Cardenas Date: April 5‚ 2015 TABLE OF CONTENTS Introduction 3 company profile 3 WACC calculation 4 explanation of calculation/results 5 Limiting factors 5 Conclusion 6 references 7 Weighted Cost of Capital: Home Depot‚ Inc. Introduction The purpose of this project is to find the Weighted Average Cost of Capital (WACC) for Home Depot. Investopedia.com reveals that the WACC is “a calculation of a firm’s cost of capital in which each category of capital is proportionately
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Gulf Oil Corporation Time lag in reserve use Barrels 3‚038 725 2‚313 End of 1983‚ Gulf reserves (Ex 3) less projected expropriations Estimated reserves 1983 production of 290 barrels suggests it takes about 8 years (2‚313/290) to produce discovered oil. We’ll thus use an eight-year cycle. Gulf Oil Corporation 4 What is Gulf worth? To assess their value we proceed as follows. 1. Identify key assumptions. Finding cost per barrel E&D outlays usually take a year to produce reserves
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established in 1924 and operating in oil refining‚ pipeline transportation‚ and industrial chemical fields. Company uses weighted-average cost of capital (WACC) as a discount rate to discount future cash flows that generate from possible projects. According to net present values of these possible projects management decides to invest or not. WACC represents the minimum rate of return from the investments to satisfy both debt-holders (bondholders) and shareholders. Since these investments are forward-looking
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Report on Case analysis of California Pizza Kitchen Course (506): Cases in Financial Decision Making SUBMITTED TO: Dr. M. Sadiqul Islam Professor Department of Finance University of Dhaka SUBMITTED BY: Group 21 MBA 16th Batch Department of Finance University of Dhaka Date of Submission April 08‚ 2015 Group No: 21 Serial Name BBA ID MBA ID 1 Farhana Bondhon 16-004 16-615 2 Farha Farzana 16-006 16- 727 3 Marufa Akhter 16-132 16- 657 Letter of Transmittal April 08‚ 2015 Dr. M. Sadiqul
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average cost of capital (WACC) as it applies to capital budgeting? a. Long-term debt. b. Common stock. c. Accounts payable and accruals. d. Preferred stock. Capital components Answer: d Diff: E [ii]. For a typical firm with a given capital structure‚ which of the following is correct? (Note: All rates are after taxes.) a. kd > ke > ks > WACC. b. ks > ke > kd > WACC. c. WACC > ke > ks > kd. d. ke > ks > WACC > kd. e. None of the
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