make long-term investments in new product lines‚ new equipment and other assets‚ managers must know the cost of obtaining funds to acquire these assets. The cost associated with different sources of funds is called the cost of capital. . If the business earns more than its cost of capital‚ the market value of the business will increase. Likewise‚ if returns on long-term investments are below the cost of capital‚ market values will decline. Therefore‚ how we manage capital is extremely important to fulfilling
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management statement not to exceed 100 words. 13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95‚ and flotation costs are 10 percent of the market price‚ how many shares would have to be issued? What is the dollar size of the issue? Market price of the firms stock $95 Flotation cost 10 percent of market price Stock price is $95‚ so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85
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since the end of the Cold War uncover that the U.S. is just changing its method for building up U.S. well-disposed governments by advancing low-intensity majority rules system. “Low-intensity conflict is a limited politico-military struggle to achieve political‚ social‚ economic‚ or psychological objectives. It is often protracted and ranges from diplomatic‚ economic‚ and psychosocial pressures through terrorism and insurgency. Low-intensity conflict is generally confined to a geographic area and is
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Costs of Corrections in the United States Did you know that 23 states prison systems are operating at over 100% capacity? "The increases in drug imprisonment‚ the decrease in releases from prison‚ and the re-incarceration for technical parole violations are leading to significant overcrowding and contribute to the growing costs of prisons. Prisons are stretched beyond capacity‚ creating dangerous and unconstitutional conditions which often result in costly lawsuits. In 2006‚ 40 out of
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FC/PM501: Skills for Study 1 Essay Investigate two possible solutions to low life expectancy in the developing world. Word Count:757 Tutor: Scott Benson City Student number: 120022833 Date: 20/02/2013 Life expectancy is one of the most utilized measurements in the demographics of a country. Low life expectancy is generally found in developing countries as they have a lower quality of life‚ this generally occurs in countries in Africa such as Nigeria‚ Sierra Leone and Malawi
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strength usually falls into one of two headings: • Cost advantage • Differentiation By applying these strengths in either a broad or narrow or narrow scope‚ three generic strategies result: • Cost leadership • Differentiation • Focus These strategies are applied at business unit level. They are called generic strategies because they are not firm or industry dependant. Cost Leadership: This generic strategy calls for being the low cost producer in an industry for a given level of quantity
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I. Cost behavior defined Module 4 Review Questions The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column‚ write the letter of the cost best described by the definition. A. Curvilinear cost B. Step-wise cost C. Fixed cost D. Mixed cost E. Variable cost F. Total Cost ___E_1. This cost increases in direct proportion to increases in volume; its amount is constant for each unit
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advantages and disadvantages of using ethnographic methods for sociological research I am going to look at the advantages and disadvantages of using ethnographic methods for sociological research. Ethnography is in-depth research into people’s lives through the use of primary data such as Observations and Interviews‚ and also secondary data such as diaries‚ and official documents. The first method of research I am going to look at is a primary research method that is unstructured interviews. There are
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Activity-based costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing. Aims of model With ABC‚ a company can soundly estimate the cost elements of entire products ACTIVITIES and services. That may help inform a company’s decision to either: Identify
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reasons why our health is so expensive. Administrative Costs The number one reason our healthcare costs are so high‚ says Harvard economist David Cutler‚ is that “the administrative costs of running our healthcare system are astronomical. About one quarter of healthcare cost is associated with administration‚ which is far higher than in any other
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