1. Valuation of Virginia’s assets a. Present value: PV = $2‚000‚000 + $3‚000‚000/(1+0.06)1 = $2‚000‚000 + $2‚830‚189 = $4‚830‚189 b. Future Value (1 year): FV = 2‚000‚000(1+0.06)1 + 3‚000‚000 = 2‚120‚000 + 3‚000‚000 = 5‚120‚000 2. Valuation of Viginia’s assets with investment c. $1 million investment PV = $1‚800‚000/(1+0.06)1 + $3‚000‚000 = $1‚698‚113 + $3‚000‚000 = $4‚698‚113 d. $2 million investment
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Question 1) 1) Discuss puzzles and anomalies 2) Discuss three forms of market efficiency Marketefficiency is a measure of the availability(to all participants ina market) of the information that provides maximum opportunities tobuyers and sellers to effect transactions with minimum transactioncosts. Types of Efficiency: Operational efficiency: It refers to thecost to buyers and sellers of transactions in securities on theexchange. This may be promoted by creating as much competitionbetween
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stock prices fluctuate constantly when the market is open‚ you never really know how much you’re going to make until you sell. The second way is when the company that owns the stock issues dividends - a payout that companies sometimes make to shareholders. ;;;;;;;; hggggggggggggggggggggggggggggg ggggggggggggf f ddddddddddddddddddd ssssssssssssss s s ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss- sssssddddddddddddddddddddddddddddddddddddddddddddddddddddddd-
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of the following statements is CORRECT? Student Response 1. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers. 2. Bond covenants are an effective way to resolve conflicts between shareholders and managers. 3. One advantage to forming a corporation is that the owners of the firm have limited liability. 4. Because of their simplified organization‚ it
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Running head: OWNERS’ EQUITY PAPER Owners’ Equity Paper University of Phoenix ACC 423 January 21‚ 2013 Owners’ Equity Paper Stockholders’ equity‚ shareholders’ equity‚ and corporate capital all define the owners’ equity in a corporation. The stockholder’s equity normally has three categories that appear. The three categories are: capital stock‚ additional paid-in capital‚ and retained earnings. Capital stock and additional paid-in capital makes up and represents the contributed (paid-in)
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1. Is Alicia a promoter? According to Jason (2011)‚ the person who is involved in incorporating with either active role or inactive role can be defined as a promoter. The case Tracy v Mandalay Pty Ltd illustrates that a person who agrees to share profit while forming a company is the promoter‚ in spite of his passive role. In this case‚ though Alicia played no active role in forming the company‚ as a shrewd business man‚ she agreed to share the profits generating form this new organization obviously
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FM ASSIGNMENT ON DIVIDEND POLICY Submitted To: Prof. Ramana Rao By Group 1‚ Ganesh Behera (22074) Udaya Bhaskar (22071) Kasu Varma (22101)
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[Type the company name] Panalba Case: Role-play experience‚ Recommendation‚ and Personal Ethics write up. Panalba Case Study - Analysis The factors that might contribute to take decisions in a socially irresponsibly way in this case are: ‘Panalba’ accounts for 12% of Upjohn Company’s gross income in the U.S. Upjohn doesn’t have any close substitute for ‘Panalba’. Some of the specific business and organizational issues confronted by the board members that contributed to the conflict between
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Memo to Shareholders – Carpino Company To: Shareholders‚ Carpino Company Inc. From: Subject: First Year Performance of Carpino Company Introduction Upon completion of Carpino Company’s first year of business‚ it is with great satisfaction that I present to you the year end Cash Flow Statement and analysis for the period ended January 31‚ 2007. You will notice the statement as presented shows in detail the various operating‚ investing‚ and financing activities of the organization. Analysis
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General procedure for transfer of shares 1. The transferor and transferee are required to execute a share transfer form under their common seals (if they are corporations) in accordance with their respective Constitution/Articles of Association. 2. The transfer is subject to ad valorem duty payable to the Commissioner of Stamp Duties (“Commissioner”). The current stamp duty payable on the transfer of shares is 20 cents for every S$100/- or part thereof of the consideration for
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