reprinT r1207L For arTicLe reprinTs caLL 800-988-0886 or 617-783-7500‚ or visiT hbr.org Do You Know Your Cost Of Capital? probably not‚ if your company is like most by Michael T. Jacobs and Anil Shivdasani W With trillions of dollars in cash sitting on their balance sheets‚ corporations have never had so much money. How executives choose to invest that massive amount of capital will drive corporate strategies and determine their companies’ competitiveness for the next decade and beyond
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(assuming 64 checks average 200.00 baht) -Project life is six years with a sales growth of 6% per annum -Zero salvage value for depreciation using the straight line method -10‚000.00 baht is charged for common area maintenance fees PBH will use cash on hand for the capital improvements and so based on the interest rates on their deposits at Siam Commercial Bank the discount rate will be 10.75% to compensate for the additional risk of the investment. Planet Karaoke
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Soup Restaurant Group Limited has been chosen to be our case study. Soup Restaurant Group Limited was listed in 2007. This company was incorporated during the early 1990s‚ as a private limited company. The company’s business can be divided into 2 key brands and business units: “Dian Xiao Er” and “Soup Restaurant”. Overall‚ the objective of the group is to offer customers with home-cooked style food in a comfortable restaurant quality setting. Hence both the Group’s Dian Xiao Er outlets and the
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Coca-Cola co. Executive Summary The following report attempts to persuade and convince potential investors that the Coca-Cola co. is a financially efficient and healthy company. Additionally it provides an analysis of the company’s short term and long term financial figures to provide an educated recommendation as to why the company is a lucrative investment. The Coca-Cola Company has always maintained high profits and low debts so that in times of hardship the company does not truly feel the profit
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world. As a responsible company‚ SSP have taken steps to ensure the health and safety of all there meats in the production chain. This report will analyze the financial information users‚ sources of finance and SSP’s ratio analysis‚ which shows cash flow of SSP over the accounting period and gives and overall analysis after those ratios. Part 1 There are six kinds of users of financial information in SSC plc. Managements are people employed by the company to administer and control the use of
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Dr. Maddah ENMG 602 Intro. to Financial Eng’g 11/03/08 Using the Accounting Framework: AOL (Chapter 5‚ Antle) • AOL’s business environment America Online was the leader in providing internet connections in 1997 with 8.6 million subscribers. AOL had two sources of revenue (i) online service revenue generated from customer subscription to online service‚ and (ii) other revenues from e-commerce and advertising. Rapid changes occurred in the manner in which subscription revenue was generated
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Valuation and Capital Budgeting for the Levered Firm Adjusted Present Value 17.1 Honda and GM are competing to sell a fleet of 25 cars to Hertz. Hertz fully depreciates all of its rental cars over five years using the straight-line method. The firm expects the fleet of 25 cars to generate $100‚000 per year in earnings before taxes and depreciation for five years. Hertz is an all-equity firm in the 34-percent tax bracket. The required return on the firm’s unlevered equity is 10 percent‚ and
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the data of the Consolidated Income Statements from 1982 to 1983‚ the Consolidated Balance Sheets of 1984 and 1983‚ the Historical Summary of Average Yen/Dollar Exchange Rates and Price Indexes‚ ECU/Yen Swap flows in the following ten years‚ Yen Long-dated foreign exchange forward‚ Cash flow of 10-year ECU Euro bonds with sinking fund (Exhibit 6)‚ and also the list of the French Utility’s outstanding publicly Traded Eurobonds. We employed the internal rate of return analysis to evaluate the
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Contents Introduction 2 Theories and Determinants of Dividend Policy (Section 1) 2 Tax and Clienteles Theory 2 Free cash flow and the Agency Theory 3 Growth and The Lifecycle theory 4 Firm size 5 Information Asymmetry and Signaling theory 5 Risk and the Bird in hand theory 7 Profitability 8 Conclusion 9 Analysis of Apple and Dell Dividend Policy (Section 2) 9 Apple Inc. 9 Dell Inc. 11 Conclusion 13 Reference 14 Introduction In a private firm‚ after a period of business activity the owner of the
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Therefore‚ the three different approaches to estimate Energy Gel costs and benefits are incorrect in at least some instances. The cash flow and with-without principle tell us that one should only be interested in the movement of cash when making capital expenditures. Also‚ any cash flows caused by an investment are relevant to a decision. Therefore‚ in the absence of strong competition‚ any lost profits due to cannibalization can be relevant. Also‚ the use
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