Week 13 Solutions Chapter 19 14. WACC – Table 19.4 shows a simplified balance sheet for Rensselaer Felt. Calculate this company’s weighted-average cost of capital. The debt has just been refinanced at an interest rate of 6% (short term) and 8% (long term). The expected rate of return on the company’s shares is 15%. There are 7.46 million shares outstanding‚ and the shares are trading at $46. The tax rate is 35%. We make three adjustments to the balance sheet: Ignore deferred taxes; this is an
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numerous studies which examined various aspects of ABC. Among such studies are McGowan [11] who assessed the integrity of ABC success‚ Innes and Mitchell [4‚ 12] and Yanren [13] who conducted research on factors affecting ABC adoption‚ and Shield [3]‚ Shields and McEwen [14]‚ Gosselin [15] and Baired et al.[16‚ 17]who concentrated on factors influencing ABC success especially at the implementation stage. However‚ there is mounting evidence that suggests most of firms are experiencing problems in
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The organisation and the environment in which it operates in are not closed systems because they influence each other. The organisation thus cannot be successful if it is not in step with its environment. The simple fact that the organisation interacts with the environment means that the organisation is is acting in an open system and will be both affected by the environment and also impact on the environment. This means that the organisation draws its inputs such as human‚ financial and informational
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Geography study on the differences Between the volcanoes MT st Helens and Kilauea Kilauea is a volcano in the Hawaiian Islands it is one of the five shield volcanoes in the Hawaiian language Kilauea means spewing or spreading. Mt St. Helens is an active stratovolcano in Washington it is named after British diplomat lord st Helens. There are many differences between the volcanoes for example the explosivity of the two volcanoes most recent eruptions are completely different Kilauea is almost
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Starbuck’s coffee. However‚ according to psychologist Abraham H. Maslow‚ all people need belongingness‚ esteem‚ and self-actualization. Carol Shields sustained that family values include qualities such as nurturing caring‚ and emotional support in her essay entitled Family Is One of the Few Certainties We Will Take with Us Far into the Future. I agree with Shields that these family values are important because they provide sources of belongingness‚ esteem and self-actualization that are basic needs for
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of $ 6.25 million for 15 years. We believe that her concerns are justified‚ because the Company had already significant amount of debt that could result in higher risks and stock price fluctuation. However‚ Andrea neglected the advantage of the tax shield the Company could use if issuing bonds: the lower discount rate of 4.225% could be applied to discount the cash layouts over 15 years’ period. • Joseph Winfield calculated the annual dividends payout of $7.5 million and was convinced that the Company
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| William the Conqueror | | | | | | William the Conqueror played a significant role in many aspects of England during the medieval times. Many influences from William are still prevalent in modern day England. As a result of William’s rule‚ England experienced changes in many parts of everyday life including in the Church‚ aristocracy‚ culture‚ and language. It is evident William the Conqueror used his prior experiences to shape himself into the warrior he was‚ with
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Medusa‚ the Misunderstood Gorgon By having the appearance of gruesome scaly skin with pure piercing green eyes‚ and the uncanny appearance of snake. This terrifying beast with collective serpent skin tied around her waist like a belt‚ is the one and only Medusa‚ as her Mythology name suggests. Medusa is most notably known for her distinctive snakes for hair. Not only did she have snakes for hair that already appalled all of mankind‚ she also has the capacity to turn anyone who looks into her eyes
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repurchasing equity are to maximize earnings per share and receive a tax shield through their high amount of debt issuance. 2. Describe the pros and cons of the recapitalization from the perspective of the tradeoff theory of capital structure. What are the biggest concerns you have? In a perfect M&M world‚ with no distress costs 100% leverage would give the firm the optimal debt level‚ because it would produce the highest tax shield. However‚ companies do not exist in a perfect M&M world‚ therefore
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land is now a hard smooth plate‚ the Canadian Shield * Step 5: the Atlantic plate crashed into the east side of Canada and the area of subduction formed the Appalachian mountains * Step 6: erosion moved sand and dirt into the pacific ocean and the atlantic ocean * Step 7: the Pacific plate collided with the west side of Canada‚ forming the Rocky Mountains * Step 8: the water between the Rocky Mountains and the Canadian shield drained south forming the Interior Plains
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