Problems form Corporate Finance 1. Compute the following: Present Value | Years | Interest Rate | Future Value | $227‚382 | 20 | 5 | | | 16 | 17 | $886‚073 | $25‚000 | 18 | | $143‚625 | $1‚941 | | 5 | $3‚700 | 2. At 9 percent interest‚ how long does it take to double your money? To quadruple it? 3. In 2006‚ a gold $3 coin minted in 1879 was auctioned for $9.000. For this to have been true‚ what was the annual increase in the value of the coin? 4. You can earn 0
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In recent years there has been considerable growth in the use of credit derivatives‚ which protect lenders against the risk that a borrower will default. For example‚ bank A may be reluctant to refuse a loan to a major customer (customer X) but may be concerned about the total size of its exposure to that customer. Speculators in search of large profits (and prepared to tolerate large losses) are attracted by the leverage that derivatives provide. By this we mean that it is not necessary to lay out
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CORPORATE FINANCE – CONCEPT QUESTIONS Class Notes - Introduction to Corporate Finance 1. Finance point of view: Corporation: a money processing machine? * Product markets: everything what corporates make (lead with customers‚ suppliers‚ labor) * Capital markets: generic term for the entities which supply cash to this money processing machine‚ and the processing machine uses the money to do things and then periodic sends money back to the capital market there are inflows from the
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CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concept Questions 1. In this context‚ an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the asset or input is actually worth today‚ not‚ for example‚ what it cost to acquire. 2. a. Yes‚ the reduction in the sales of the company’s other products‚ referred to as erosion‚ should be treated as an incremental cash flow. These lost sales are included because
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Case Solutions Corporate Finance Ross‚ Westerfield‚ and Jaffe 9th edition CHAPTER 2 CASH FLOWS AT WARF COMPUTERS The operating cash flow for the company is: (NOTE: All numbers are in thousands of dollars) OCF = EBIT + Depreciation – Current taxes OCF = $1‚332 + 159 – 386 OCF = $1‚105 To calculate the cash flow from assets‚ we need to find the capital spending and change in net working capital. The capital spending for the year was: | |Capital spending
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Name of the Researcher – Dr. Y. S. Vaishampayan Abstract: The Role of Subsidiary Companies from the Perspectives of Growth and Development THEME - Role of Competition‚ Flexibility and Trade in Economic Growth This Research Paper throws light on the efforts of Indian corporations in their objectives of maximization of shareholders wealth. To achieve this‚ they have taken the route of subsidiarization. This Paper only takes the results achieved by Indian business corporations in fulfilling
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CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Answers to Warm-Up Exercises E11-1. Categorizing a firm’s expenditures Answer: In this case‚ the tuition reimbursement should be categorized as a capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year. E11-2. Classification of project costs and cash flows Answer: $3.5 billion already spent—sunk cost (irrelevant) $350 million incremental cash outflow—relevant cash flow $15 million per year cash
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The Handbook of News Analytics \ in Finance Edited by Gautam Mitra and Leela Mitra WILEY A John Wiley and Sons‚ Ltd‚ Publication Contents Preface xiii Acknowledgements xvii About the editors xix About the contributors xxi Abbreviations and acronyms xxv 1 Applications of news analytics in finance: A review Leela Mitra and Gautam Mitra 1.1 Introduction 1.2 News data ’ 1.2.1 Data sources 1.2.2 Pre-analysis’of news data 1.3 Turning qualitative text into quantified metrics and time-series
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Corporate Finance Case Study: Volkswagen Volkswagen (VW) Volkswagen (VW) is a German automobile manufacturer which was originally founded in 1937. Now VW Group is one of world’s leading automobile manufacturers and the largest carmaker in Europe‚ with its recent headquarter in Wolfsburg. VW is one of the ten brands under VW Group. (Volkswagen Homepage‚ 2011) 2011 VW’s revenue is 159‚337 million EUR; net income is 15‚409 million EUR‚ with a profit margin of 9.6707%. (Bloomberg
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In chapter 26 of Oliver Twist‚ a young girl named Rose begs her Aunt not to throw Oliver Twist in jail. She pleads with her aunt‚ telling her "’think how young he is‚ think that he may never have known a mother’s love‚ or the comfort of a home." Rose ultimately wins the argument and Oliver is saved from jail and taken in by Rose and her aunt. The subject of this rhetorical situation is‚ Oliver Twist’ innocence and why he shouldn’t be sent to jail. Rose mentions the fact that Oliver is a young
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